1. What is Strategic Alliance?
2. Why Strategic Alliance? (Motivation)
a. Role of Strategic alliances as an entry mode.
3. Advantages & Disadvantages
4. How potential difficulties could be avoided (Critical Analysis required)
5. Discuss Culture Fit & Strategic Fit Concept
a. Problems related to cultural and strategic fit in international strategic alliances.
b. Suggest strategies for acquiring or aligning organizations to manage strategic and cultural fit problems in international strategic alliances.
Note: include Examples (3-4) supporting arguments and references wherever applicable.
Previous Year Exam Questions:
1. What compelling reasons might influence a firm’s adoption of strategic alliances when expanding internationally? What are possible pitfalls and how might they be avoided? Discuss with reference to appropriate examples of strategic alliances.
2. Outline the main reasons why a firm may utilize strategic alliances when expanding internationally, including a discussion of the potential difficulties and how they can be avoided. Discuss with reference to appropriate examples of strategic alliances.
3. International strategic alliances can be used to gain competitive advantage but partnering organizations may face problems of cultural and strategic fit. What are these potential problems and how can they be managed?
4. Cultural and strategic fit are critical factors in determining how effective international strategic alliances are in delivering competitive advantage. Discuss.
5. International strategic alliances are expected to create value for parent firms but they may also destroy value when managing directors of strategic alliances do not play their expected role at different phases of evolution. To what extent do you agree with this statement?
Essay Content Tips:
1. Discuss how relevant are these theories today? Be critical when required and back up your arguments.
2. Use as much up to date examples as possible, from a variety of geographical settings (emerging & developed economies & size of firm (MNEs and SMEs ).
Note: Use google scholar to find recent interesting examples (after 2011).
Grade Requirement: Class 1 / Grade “A”
Thus the essay should demonstrate an excellent
Understanding of Topic core issues and relevant theories.
Content and a very good underlying argument.
Critical engagement with the key debates.
Reference to appropriate and relevant literature.
Reading Materials:
1. Hill, C.W. (2012) International Business (Global Ed), Chapter 15
2. Das, T. & Teng, B.S. (2000) A resource-based theory of strategic alliances, Journal of Management, 26 (1): 31-61
3. Demirbag, M. and Mirza, H (2000) Factors Affecting Joint Venture Success: An-Empirical Analysis of Foreign-Local Partner Relationships and Performance in Joint Ventures in Turkey, International Business Review, 9 (1): 1-35.
4. Beamish, P.W., and Inkpen, A.C. (1995) Keeping International Joint Ventures Stable and Profitable, Long Range Planning, June, 26-36.
5. Doz, J.L. (1996) The evolution of cooperation in strategic alliances: initial condition or learning process, Strategic Management Journal, 17 (special issue):55-83.
6. Hamel, G. (1991) Competition for competence and interpartner learning within international strategic alliances, Strategic Management Journal, 12 (special issue): 83-103.
7. Glaister, K.W. and Buckley, P.J. (1996) ‘Strategic Motives for International Alliance Formation’ Journal of Management Studies, 33, 3, pp. 301–32
8. Das, T.K. and Teng, B.S. (2001) ‘Trust, Control, and Risk in Strategic Alliances: An Integrated Framework’ Organization Studies, 22, 2, pp. 251–83
9. Haleblian, Devers, McNamara, Carpenter and Davison (2009).‘Taking Stock of What We Know About Mergers and Acquisitions: A Review and Research Agenda’ Journal of Management, 35, 3, pp. 469-502
10. Epstein, M. (2005) ‘The Determinants and Evaluation of Merger Success’ Business Horizons, 48, pp. 37–46
11. Adobar, H. (2006) The role of personal relationship in inter-firm alliances: Benefits, dysfunctions, and some suggestions. Business Horizons, 49, 473-486.
12. Gulati, R., Sytch, M., and Mehrotra, P (2008) Breaking up is never easy: Planning exit in a strategic alliance. California Management Review, 50(4):147-163.
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