Creating Value Through Strategic Alliances

Wing Sun Li
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Wing Sun Li: Beijing Normal University–Hong Kong Baptist University

Chapter 11 in Strategic Management Accounting, 2018, pp 193-216 from Springer

Abstract: Abstracts Strategic alliance is a form of strategic growth. Strategic partners form alliances and anticipate gains through synergy creation in the strategic alliance. Though there are many success cases, there are equally plentiful of failure cases. Therefore, it is very important to find true strategic partners who are willing to contribute synergy value through wholehearted partnership. This chapter explores new ways to find a true partnership. Initially, it discusses key determinants which influence synergy value creation through strategic alliance, i.e., relation-specific assets, interfirm knowledge sharing, complementary resource endowments, and effective governance mechanism. Subsequently, it introduces the concept of expected payoff structure (private and common benefit ratios) as a means to identify partnership stability, i.e., competitive or cooperative partnership. In fact, private and common benefit ratio can be used as an index to predict stability of partnership. For partnership selection, it is important to have strategic fit for both partners. A new concept of strategic symmetry is introduced to explore how far prospective partnership in terms of strategic, organizational, and operational level is aligned (i.e., high and low strategic symmetry). To combine the stability of partnership (i.e., competitive and cooperative) and strategic symmetry (high and low symmetry) concepts in a 2 × 2 matrix, the chapter also evaluates the likely risk impact (both relational and business performance risk) on the ultimate value of strategic partnership. Risk mitigation measures are discussed to rectify the partnership problems. Cases are discussed throughout the chapter to facilitate application of new concepts and calculations.

Keywords: Strategic alliance; Strategic partnership; Synergy value; Payoff structure; Private to common benefits ratio; Strategic symmetry (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/978-981-10-5729-8_11

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