The authors immediately address the importance of global alliances in building value in a global company. Discussion around opportunities in taking advantage of partner behaviors, geographic distance, and value systems are threaded throughout this paper. The use of global alliances afford a company to take advantage of skill sets not available locally, sharing the costs and risks, and economy of scale.
The authors compare and contrast the number of alliance firms that highlight the greatest value creation based on the cost to implement. A comparison of a sampling of 10 major Global firms and the number of alliances by industry was used for this study. They broke down the alliances by type such as equity holdings and partner firms as well as their size. By examining alliance characteristics and their influence on the relationship a value can be determined.
Reference:
Kim, K., & Park, J. (2002). The determinants of value creation for partner firms in the global alliance context. Management International Review, 42(4), 361-384.
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