Professional Documents
Culture Documents
7
Chapter
7
Making
Strategic
Alliances
and
Networks
Work
Global Strategy
Strategy
Global
Mike W. Peng
Mike W. Peng
Copyright
Copyright
2014
2014 Cengage
Cengage Learning.
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Outline
Defining strategic alliances and networks
A comprehensive model of strategic alliances
and networks
Formation
Evolution
Performance
Debates and extensions
The savvy strategist
Copyright 2014 Cengage Learning. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Mergers
Mergers
and
and
Acquisitions
Acquisitions
(M&A)
(M&A)
Market
Market
Transactions
Transactions
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copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 7.1
A Comprehensive Model
of Strategic Alliances
and Networks
Copyright 2014 Cengage Learning. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 7.2
A Comprehensive Model of
Strategic
Industry-based
considerations
Alliances
and Networks
Resource-based considerations
The resource-based view is embodied in the
VRIO framework, which are value, rarity,
imitability and organizational aspect of
strategic alliance and networks
Copyright 2014 Cengage Learning. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ADVANTAGES
DISADVANTAGES
Table 7.1
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copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Formation
Stage one: To cooperate or not to cooperate
Stage two: Contract or equity?
Stage three: Positioning the relationship
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copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Source: Adapted from S. Tallman & O. Shenkar, 1994, A managerial decision model of international
cooperative venture formation (p. 101), Journal of International Business Studies, 25 (1): 91113.
Figure 7.3
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website, in whole or in part.
NON-EQUITY-BASED
ALLIANCES/NETWORKS
High
Low
High
Low
DRIVING FORCES
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copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Evolution
Combating opportunism
Need to protect against opportunism
Contractual safeguards and credible commitment
Evolution (cont.)
Going through a divorce
Initiation
Going public
Uncoupling
Aftermath
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copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Performance
The performance of strategic alliances and
networks
A combination of objective and subjective
measures can be used to determine
performance
Four factors may influence the performance of
alliances and networks: equity, learning and
experience, nationality, and relational
capabilities
Objective
Objective
Subjective
Subjective
Table 7.4
Copyright 2014 Cengage Learning. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Copyright 2014 Cengage Learning. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
AREAS
No contract can cover all elements of the relationship. Relying on a detailed contract does
not guarantee a successful relationship and it may indicate a lack of trust.
Warning signs
Like married individuals working hard to invigorate their ties, alliances require continuous
nurturing. Once a party starts to waver, it is difficult to turn back.
Good married couples also fight. Their secret weapon is to find mechanisms to avoid
unwarranted escalation of conflicts. Managers need to handle conflicts-inevitable in any
relationship-in a credible, responsible, and controlled fashion.
Source: Based on text in M. W. Peng & O. Shenkar, 2002, Joint venture dissolution as
corporate divorce (pp. 101102), Academy of Management Executive, 16 (2): 92105.
Table 7.7
Copyright 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.