1. Introduction
As the competitive environment is getting even more competitive day by day, a good strategy is needed just to stay in business. One such strategy that is commonly implemented is through the use of "strategic alliance" "Strategic allia...
1. Introduction
As the competitive environment is getting even more competitive day by day, a good strategy is needed just to stay in business. One such strategy that is commonly implemented is through the use of "strategic alliance" "Strategic alliance" has generally been used as a way of managing strategies in the business, designing the business duration and how it will prosper in the long term. It is this "strategic alliance" that not only defines the enterprise in terms of it's substantial or potential competitive relationships but also establishes cooperative relationship temporarily in part of business or part of special function. However, because the "strategic alliance" also takes into consideration the inclusion of alliance partner to mutually benefit, there is also a potential risk involved.
In the past, many researchers have concentrated mainly on the attributes among affective factors of alliance rather than how it effects the businesses as a management process. Therefore, the research should focus on the effect of the strategic alliance through the management process and the content oriented approaches. After examining many previous studies about the strategies, selection of variables of affective factors in strategic alliance is divided concerned variables into four categories. Hence, inconsistencies are evident. More so, the research was modeled on existing relationships between variables, and since each company has it's own unique problems and situations, no situation can be the same.
Therefore the purpose of this research is to gain a greater understanding of the strategic alliance and it's affect on firm performance in order to confirm whether what has been stated previously by other researchers are correct or not.
2. Hypotheses
The hypotheses of this research are as follows.
1) Strategic Characteristics
*A clear definition of business goal and objectives to aid in the direction and decision making of the companies at hand.
*The stronger the strategic alliance the more influence each company will have on each other which can be both beneficial and also a potential risk at the same time.
*The more both managers know about their own companies and the alliance as a whole, the better off both companies will be.
2) Characteristics of Resource
*The more each company has invested in it's own company and that of the allianced company, the more financially secure both companies would be if one goes through a difficult situation.
*The more money can be used to fund other mutually beneficial projects as both companies can split the cost and share the profits.
3) Characteristics of Management
*As management can split up the workload between both companies therefore more things can be done systematically and with more cohesion.
*Both companies can plan together resulting in a clearer definition of the aims and objectives in the strategic alliance and how each company will benefit from it.
4) Constituted Attitude
*The more reliable each company is to each other and their customers, the more beneficial each company will be to the alliance.
*The more a company is dependant on the other, the more benefit each company will get from the other from the alliance.
*With a joint alliance, competition can be more easily dealt with through the use of the increased resources that the companies have being in an alliance.
3. Conclusion and Discussion
The result the empirical analysis are follows :
As a result of searching the characteristics of the strategic alliance, the constitution factors such as strategic intents between partners, the willingness of manager and importance of strategic so on, had a positive relationship in effect of alliance.
The findings of the study are listed below :
*The closer the alliance, the more beneficial both companies are.
*The characteristics of resource of both companies combined, did not prove the relationship between the companies closer and/or aid in the alliance to a large extent.
*The more joint ventures that are committed by each company, the more opportunities they present.
*BY combining resources and sharing the managerial roles, competition is less of a threat.
In conclusion, this research examined the general characteristics taken when using strategic alliance. Unfortunately due to the lack of sample that is used in this study, only a limited generalization can be made. This therefore leads to a limitation in the comparison and analysis of the studies in reference to each other. Therefore, we need research that systematically critical analyses on the strategic alliance and the effect on the business and their partners. If this was done, we would expect that this kind of research would be more enriching in terms of academic, theoretical and practical senses about strategic alliance over all.