Some of the definitions emphasize the fact that the partners do not create a new legal entity, i. To a greater or lesser degree, some alliances result in the virtual integration of the parties through partial equity ownership, through contracts that define rights, roles and responsibilities over a span of time or through the purchase of non-controlling equity interests.
This cooperation can either be an informal alliance which is not contractually designated, which appears mostly among smaller enterprises, or the alliance can be set by a contract. A strategic alliance could help a company develop a more effective process, expand into a new market or develop an advantage over a competitor, among other possibilities.
On the one hand, they can "access tangible resources which are directly exploitable". It cannot be overstated that the achievement of value may come in many forms including new entries to market, speed to market, innovation or new product or process, etc.
On the other hand, they can "access intangible resources, which are not directly exploitable". An example would be the close relation between car manufacturers and their suppliers. This includes know-how and information and, in turn, innovativeness. In a strategic alliance, each company maintains its autonomy while gaining a new opportunity.
This is also called cross-shareholding and leads to complex network structures, especially when several companies are involved. Further kinds of strategic alliances include: Vertical strategic alliances, which describe the collaboration between a company and its upstream and downstream partners in the Supply Chain, that means a partnership between a company its suppliers and distributors.
Others see joint ventures as possible manifestations of Strategic Alliances. In addition this makes take-overs by other companies more difficult.
In the s, strategic alliances aimed at building economies of scale and scope.
It is a way to supplement internal assets, capabilities and activities, with access to needed resources or processes from outside players such as suppliers, customers, competitors, companies in different industries, brand owners, universities, institutes or divisions of government.
This is especially relevant in strategic outsourcing relationships. Unlike in a joint venture, firms in a strategic alliance do not form a new entity to further their aims but collaborate while remaining apart and distinct.
The acquired share of a company is a minor equity share, so that decision power remains at the respective companies. Definitions including joint ventures[ edit ] A strategic alliance is an agreement between two or more players to share resources or knowledge, to be beneficial to all parties involved.
Historical development of strategic alliances[ edit ] Some analysts may say that strategic alliances are a recent phenomena in our time, in fact collaborations between enterprises are as old as the existence of such enterprises.
Examples would be early credit institutions or trade associations like the early Dutch guilds. This new company is then a separate legal entity. A strategic alliance is less involved and less permanent than a joint venture, in which two companies typically pool resources to create a separate business entity.
This excludes legal formations like joint ventures from the field of Strategic Alliances. Intersectional alliances are partnerships where the involved firms are neither connected by a vertical chain, nor work in the same business area, which means that they normally would not get in touch with each other and have totally different markets and know-how.
Michael Porter and Mark Fuller, founding members of the Monitor Group now Monitor Deloittedraw a distinction among types of strategic alliances according to their purposes:Strategic Alliances and Interfirm Knowledge Transfer 79 many of the alliances of the past 20 years, such as joint R&D and product development, can involve.
A summary of the paper -- Mowery, David C., Joanne E. Oxley, and Brian S. Silverman. "Strategic alliances and interfirm knowledge transfer." (). knowledge transfer in strategic alliances (Simonin, ), and methodological issues of construct validity in measuring strategic alliance performance (Arino, ), or swiping generalizations of more general magnitude – such as Bensimon’s executive guidelines (1.
A strategic alliance (also see strategic partnership) is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. A strategic alliance will usually fall short of a legal partnership entity, agency, or corporate affiliate relationship.
This paper examines interfirm knowledge transfers within strategic alliances. Using a new measure of changes in alliance partners' technological capabilities, based on the citation patterns of their patent portfolios, we analyze changes in the extent to which partner firms' technological resources ‘overlap’ as a result of alliance participation.
Although knowledge transfer within international strategic alliances has attracted plenty of scholarly attention, there is a paucity of research about the knowledge transfer process, the type of knowledge transferred, and the impact of the transferred knowledge on alliance performance, especially within developed?developing country-based strategic alliances.Download