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Business Alliances
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Business Alliances
In recent years, businesses' engagements in international alliances has been augmented considerably. While the popularity of such cross-border partnerships has stimulated the formation of a variety of collaborative arrangements between firms, this movement presents a paradox for researchers and managers. On one hand, a traditional view of interfirm competition suggests that businesses are naturally involved in fierce competition with their rivals. On the other hand, today's firms—especially multinational players—recognize the benefits of collaborative ventures. From a strategic point of view, multinational corporations (MNCs) have changed their traditional views of competition and have adopted a variety of new and flexible approaches for achieving sustainable competitive advantages. Such a shift in their business strategies has become more vivid today than ever before. In particular, the frequent use of business alliances as an indispensable tool in their strategic repertoire has manifested itself in the global business.
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