The point is ‘for a company to emerge from an alliance more competitive than when it entered it’. 2 DefinitionsĪ MNE is a firm ‘headquartered in one country operations in other countries’1.Ī strategic alliance means two firms collaborating to mutually profit from market share, knowledge and resources. It will be shown that importance of drivers and likelihood benefits hinge upon the MNE and its industry and determine its engagement in SAs and JVs. appendix), drivers and benefits are analysed. This essay describes global drivers leading to the increased emergence of strategic alliances (SAs) and cross-border joint-ventures (JVs) and implied potential benefits for multinational firms (MNEs).Īpplying Yip’s framework (viz.
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