Factors affecting the nature of alliance governance and competitiveness

Abstract

Coordination needs in alliances; nature of alliance governance and competitiveness of alliances are interdependent dimensions in alliances. Coordination needs are affected by technology transfer and strategic complexity which might result in alterations in the nature and background of the alliance. This research examines the effect of complexity in technological transfer, strategic specifications of the partners and prior experience of the firm in the target country on the nature of alliance governance and alliance competitiveness. Total Interpretive Structural Model (TISM) has been developed to determine the hierarchy amongst these factors. The findings provide important inferences on the factors that affect competitiveness of contractual alliances. Results suggest that nature of alliance – being contractual agreement or a joint venture influences the competitiveness of the alliance.