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Strategic Alliance and Vertical Integration

In: Trends in Japanese Management

Author

Listed:
  • Toyohiro Kono
  • Stewart Clegg

Abstract

Alliances involve cooperation between more than two companies to achieve a common goal or obtain mutual benefit by combing the specific strengths of each company. Thus an alliance involves something more than merely transactions. While transactions are the stuff of business and organisational relationships in general, only those that are of more than fleeting duration and are built on some kind of relationship count as alliances. For instance any trade that occurs through market mechanisms at arm’s length, using only market signals such as price or quality, is not an alliance. Neither is free trade conducted through the Internet, nor the non-specific forms of loose cooperation that sometimes occur between the members of a zaibatsu group (exchange of personnel or cross-shareholding) because there is no exchange of key resources. Several types of alliance can be distinguished, using various criteria.

Suggested Citation

  • Toyohiro Kono & Stewart Clegg, 2001. "Strategic Alliance and Vertical Integration," Palgrave Macmillan Books, in: Trends in Japanese Management, chapter 5, pages 145-166, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-333-99389-7_5
    DOI: 10.1057/9780333993897_5
    as

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