Strategic Alliances In A Collaborative Organisation Commerce Essay


Strategic alliances are collaborative organizational arrangement that use resources of each other or governance structures of each other from more than one existing organization are called strategic alliance. Strategic alliance is having benefits like Adding value to the product and services Improving market access of the product, Strengthening operations like marketing and manufacturing, Adding technological strength to the product and production, Enhancing strategic growth of the firm, Enhancing organizational strength of the firm, Building financial strength of the firm. The knowledge transfer from the one company to another company is one of the major functions in strategic alliance. And the control and management of knowledge transfer is become a vital for the company. (Gupta and Govindarajan, 2000) Strategic alliances with foreign partner firm having challenges in knowledge sharing at all levels of the organization, Multinational strategic alliances form multiple viewpoints: what they are, kinds of strategic alliances, and management tasks such as enterprise-wide strategic alignment, negotiating strategic alliance; selecting alliance partner people and knowledge sharing for the better communication and technology sharing.

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Knowledge creation can become significant function from alliances. but not all knowledge creation will have immediate performance payoffs, over the long term knowledge creation should reinforce a firm's competitive strategy. knowledge creation is a process of the strategic alliance involving interactions at various levels and it expanding community of knowledge that internalize the alliance knowledge. knowledge creation while strategic alliance and the upward movement of knowledge through the different organizational levels can play vital role in the success of the alliance. (Inkpen and Dinur, 1998)

The knowledge sharing is important and vital function for the strategic alliance so the advantages and disadvantages is associated with the knowledge sharing to maintain the company's core competencies. Advantages of the knowledge sharing including Ability to better respond to changes in consumer demand which changes time by time, Ability to use the supplier's technical as well as managerial knowledge for product development, Ability to enter in the new technologies market and innovation in industry. The knowledge is exchanged between firms, there is a risk of the knowledge may be appropriated or misused. When knowledge is exchanged, firms have two options, they can try to protect with contracts or they can refused to trust. So the knowledge sharing is the important term for the strategic alliance. So the exploring the secrets of the company to the other competitive or alliance company is risk of the knowledge sharing and the process or product which is core competence can be used by the other company and chances of the failure in that market, moreover it is especially useful in the pharmaceutical industries, research and development provider industry and software industry for maintain firm's core competencies. So it justifies the research question "How extends the knowledge to be shared, and up to what extend exploring the secrets of the company to Alliance Company to maintain company's core competencies?"

More important literature review

Buckley & Tan (2009) describe that, two types of knowledge accession partnerships: one pursuit of efficiency and productivity based on complementary knowledge transfer and the other in pursuit of business scope and product adaptability based on supplementary knowledge transfer. They also give differentiations between complementary knowledge accession and supplementary knowledge accession, and between complementary knowledge acquisition and supplementary knowledge acquisition. Das and Rahman (2006) provide framework of the key determinants of partner opportunism in strategic Alliances. More over this article gives comprehensive determinants comprising three categories of factors: economic, relational, and temporal. Holmberg and Cummings (2009) provides new dynamic partner selection tool for evaluating industries in which the strategic alliance can be possible and they also gives the partner selection criteria and the knowledge sharing is the one of the criteria for the partner selection in the strategic alliance. Benjamin Prasad (1995) explain that Multinational Alliances reflects the result of survey of American technology executives. Multination alliances are one of the prominent tools of corporate strategies and senior technology executive play a vital role for shaping multinational alliances. Alliances are important to solve the firm's strategic problems and also offer the mutual learning opportunity. Strategic alliances are used as major strategies for carrying out global workforce.

Jeffrey J. Reuer and Maurizio Zollo (2005) explains alliance instability by analyzing the favorability of research alliances' termination outcomes rather than the longevity of collaborative agreements. And explain the extent to which terminated alliances are successful or failed partnerships, or might simply reflect more neutral outcomes such as contract expiration. Author compared two different streams of the institutional economics literature, evolutionary economics and transaction cost economics, to measure the effects of parent firms accumulation of alliance experience and alliance attributes on their termination outcomes. Dacin, Oliver, & Roy (2007) suggests that strategic alliances work as important legitimating function for firms which is ultimately mediated by alliance governance structure process and partner selection preferences for the alliance which is most important partner selection has a significant influence on alliance better functioning. Dussauge, Garrette, & Mitchell (2000) examine the outcomes as well as durations of strategic alliances among rival firm, using alliance success. Moreover alliance success vary depending upon the industry and market. Author also discuss about collaboration, it is a method by which firms learn new success in alliance. The rearrangement of a collaboration, either as a reshaped or takeover by a partner firm, then it can help firms to learn new skills

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Kim and Arvind Parkhe (2009) show the two variables for the partner selection first is competing similarity and second is cooperating similarity. They also developing a comprehensive model which focus on partner characteristics for better firm performance and partner capabilities knowledge sharing.

Author determine that alliances permit the leveraging of different, unique and complementary resources and capabilities. Robert J. Mockler(1997) provides an analytical framework for understanding multinational strategic alliances, and application frameworks for entering into and managing such strategic alliances more effectively. The article focuses on multinational strategic alliances from multiple viewpoints: what they are, kinds of strategic alliances, and management tasks such as enterprise-wide strategic alignment; negotiating strategic alliances; selecting alliance partners people and company or government body.

TAILAN CHI (2010) The paper explains definition of trading is needed to conduct a full analysis of the exchanges involving imperfectly imitable and imperfectly mobile firm resources. It exploring the conceptual relationships between some prominent imitation barriers and various exchange difficulties, The paper identifies four primary transaction cost problems in the trading of strategic resources: adverse selection, Moral hazard, cheating and holdup. Inkpen, (2000) explain that dynamics of alliance learning and develop a conceptual framework designed to capture the tension between cooperation and competition. Based on the concepts of private and common benefits and relative scope, the authors explore firms' learning behavior patterns. Mowery, Oxley, Silverman (1996) explains inter-firm knowledge transfers within strategic alliances, they mainly use the technological capabilities depending upon the parent portfolios, and determine the knowledge sharing capability and interfirm knowledge transfer. McCutchen &  Swamidass (2004) measure the alliance of pharmaceutical industry worldwide. factors tend to encourage the use of external sourcing of new product technology in this industry: Author give various proposition depending upon the firm size, number of licenses, and market access and author also develop the various proposition to understand the motivation factors in this article. T. K. Das (2000) suggest the resource based theory for stratagic alliance measure, resource based theory covers four aspects of strategic alliances, Rationale, Formation, Structural preferences, and Performance. Author examine resource types and structural preferences for like property based resource and knowledge based resource. Cullen and Sakano(2000) Development and management of relationship in stratagic alliance and they also discuss socio-psychological aspect of the alliance that gives positive results beneficial for alliance. Two important areas of relationship are mutual trust and commitment. Which can be very useful parameter in the knowledge sharing in the strategic alliance.

The limitation of the question it can be used for the one industry cannot be used for the other industry or it is different as per culture to culture and type of the industry so it limits the interpretation for this research.

Significance of the research question it can be useful for the alliance industry and it can be prevent the firm's core competencies after completion of the research this research will be useful for the industries which want to become part of the strategic alliance with other and they can protect the core competencies. This research article may be useful in industries of pharmaceutical industries, research and development providers, and software industries, which are currently on strategic alliance or will become part of strategic alliance.


I am planning to first collect the more data and then analysis the data to research the question and for the data collection I will be using Literature review, the tools for the collection of the data will be primary literature like research article and peer reviewed journals and secondary data like books, internet and class notes. I already used internet library and physical library for the peer-reviewed journals as well as secondary data like books of strategic alliance for the literature review, The data which is need for the research of the article is about the outcome of the strategic alliance and knowledge sharing extend for the parent firm to the alliance firm, so the corporate data as well as the corporate person's view as well as data from industry is necessary for the research. For that I can be use the primary data for firm performance from peer reviewed journal and the corporate portfolios from finance websites like or moreover I am planning to contact two type of the firm first which having the strategic alliance and the firm which is planning to do the strategic alliance. moreover for finding the effect of the knowledge sharing in the company I can use hypothesis for it and collect the data for it and do the research based on the hypothesis. For the knowledge sharing capability of the parent firm as well as alliance firm I can contact the managers and key mans in the industry and send the questionnaires for the data collection on the knowledge sharing and its effect on the company's performance and core competencies. After collection of the all the data I will analysis the data and will come to any conclusion.

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Data analysis is to be performed using the computer software called LISREL, SPSS and SAS, I am planning my most of the data analysis work using SPSS because that software having accurate results It can be possible to handle missing data in SPSS, moreover I have basic knowledge of the SPSS so I don't need to do special learning of the software and I can easily find the calculation method and interpretation for SPSS. But some function is above the limit of the SPSS specially for the structural equation I can use LISREL and for complicated data processing I can use SAS. I will validate my results by peer review.