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A dynamic approach to the analysis of strategic alliances

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  • Rao, Bharat P.
  • Reddy, Srinivas K.

Abstract

The increasing trend in strategic alliance formation between major firms around the world, has prompted researchers from various disciplines to look at this phenomenon in great detail. In this paper, we review alternate approaches in the literature in this area. We then propose a non-linear dynamic approach to study the formation of competitive strategic alliances and contrast it with the traditional game-theoretic approach. The pros and cons of these two approaches are discussed with reference to a competitive alliance scenario. Dynamic models have significant managerial implications as they enable us to investigate 'if-then' type scenarios and project the impact of different strategies.

Suggested Citation

  • Rao, Bharat P. & Reddy, Srinivas K., 1995. "A dynamic approach to the analysis of strategic alliances," International Business Review, Elsevier, vol. 4(4), pages 499-518.
    • Handle: RePEc:eee:iburev:v:4:y:1995:i:4:p:499-518
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    Cited by:

    1. Xu, Yan & Hu, Bin & Wu, Jiang & Zhang, Jianhua, 2014. "Nonlinear analysis of the cooperation of strategic alliances through stochastic catastrophe theory," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 400(C), pages 100-108.
    2. Sheth, Jagdish N. & Parvatiyar, Atul & Sinha, Mona, 2012. "The conceptual foundations of relationship marketing: Review and synthesis," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 13(3), pages 4-26.
    3. O'Dwyer, Michele & Gilmore, Audrey, 2018. "Value and alliance capability and the formation of strategic alliances in SMEs: The impact of customer orientation and resource optimisation," Journal of Business Research, Elsevier, vol. 87(C), pages 58-68.

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