Cooperative Strategies: Performance Determinants and Implications for the MENA Region

Taieb Hafsi

No 9811, Working Papers from Economic Research Forum

Abstract: There is increasing support for the need to link the resources available to the nature of the environment to appreciate the strength of the competitive advantage generated. For example, property-based resources would provide an advantage in stable environments, but would not in turbulent environments. Similarly, cooperative arrangements dealing with knowledge-based resources are more likely to provide an advantage and are more profitable in turbulent environment situations. In our study of four industries, we confirmed that there is a relationship between the stage through which the industry is going, thus its level of turbulence, and the nature of cooperative strategies. More specifically, it appears in situations of industry reconfiguration, that the smaller, more peripheral firms have more incentive in developing international alliances. It is the source of a significant and sustainable competitive advantage that is not easily available to the more established firms. Implications for the MENA region are discussed.

Date: 1998-06-08, Revised 1998-06-08
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