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Accelerating international expansion through global alliances: a typology of cooperative strategies

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  • García-Canal, Esteban
  • Duarte, Cristina López
  • Criado, Josep Rialp
  • Llaneza, Ana Valdés

Abstract

Firms with low levels of internationalization may feel the need to speed up their international development in order to be able to compete with multinational enterprises (MNEs) of bigger size and wider scope. Global alliances are a means to achieve such an accelerated process, not only because they allow firms to gain access to several markets at the same time, but also because they make it possible to enhance their own international competitiveness through the use of their partners' resources. This paper provides a detailed illustration of the competitive uses of global alliances as a means to accelerate the international expansion of the firm. Using evidence from 11 case studies on Spanish firms, we build a typology of four cooperative strategies. One of these strategies is based on local alliances, whereas the remaining three are based on global alliances. The paper presents a detailed case study of the firm which best fits each strategy found in global alliances. The implications of each strategy for alliance management, together with the possible evolution of each of them, are also discussed.

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  • García-Canal, Esteban & Duarte, Cristina López & Criado, Josep Rialp & Llaneza, Ana Valdés, 2002. "Accelerating international expansion through global alliances: a typology of cooperative strategies," Journal of World Business, Elsevier, vol. 37(2), pages 91-107, July.
    • Handle: RePEc:eee:worbus:v:37:y:2002:i:2:p:91-107
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    2. Onur A. Koska, 2016. "A Consumer-Surplus Standard in Merger Approvals, Foreign Direct Investment, and Welfare," ERC Working Papers 1612, ERC - Economic Research Center, Middle East Technical University, revised Oct 2016.
    3. Rousska Dimova, 2004. "International Corporations and Globalization," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 99-114.
    4. Asmund Rygh & Gabriel R. G. Benito, 2018. "Capital Structure of Foreign Direct Investments: A Transaction Cost Analysis," Management International Review, Springer, vol. 58(3), pages 389-411, June.
    5. Ortiz-de-Urbina-Criado, Marta & Montoro-Sánchez, Ángeles & Mora-Valentín, Eva-María, 2014. "Impact of growth strategy on mode of governance in alliances," International Business Review, Elsevier, vol. 23(4), pages 838-848.
    6. Onur A. Koska & Ngo Van Long & Frank Stähler, 2018. "Foreign direct investment as a signal," Review of International Economics, Wiley Blackwell, vol. 26(1), pages 60-83, February.
    7. Hitt, Michael A. & Li, Dan & Xu, Kai, 2016. "International strategy: From local to global and beyond," Journal of World Business, Elsevier, vol. 51(1), pages 58-73.
    8. Xu, Hangjun & Guo, Huiling & Zhang, Jing & Dang, Anh, 2018. "Facilitating dynamic marketing capabilities development for domestic and foreign firms in an emerging economy," Journal of Business Research, Elsevier, vol. 86(C), pages 141-152.
    9. Scott-Kennel, Joanna & Enderwick, Peter, 2004. "Inter-firm alliance and network relationships and the eclectic paradigm of international production: an exploratory analysis of quasi-internalisation at the subsidiary level," International Business Review, Elsevier, vol. 13(4), pages 425-445, August.
    10. Mika Kylänen & Marcello M. Mariani, 2013. "Public and Private Dynamics and Co-opetition: Evidence from the Tourism Sector," Working Paper series 14_13, Rimini Centre for Economic Analysis.
    11. García-Canal, Esteban & Sánchez-Lorda, Pablo, 2007. "One more only if it is one of us. The number of partners and the stock market reaction to domestic and international alliance formation in EU telecom firms," International Business Review, Elsevier, vol. 16(1), pages 83-108, February.
    12. Jiang, Marshall S. & Branzei, Oana & Xia, Jun, 2016. "DIY: How internationalization shifts the locus of indigenous innovation for Chinese firms," Journal of World Business, Elsevier, vol. 51(5), pages 662-674.
    13. Knight, Gary A. & Liesch, Peter W., 2016. "Internationalization: From incremental to born global," Journal of World Business, Elsevier, vol. 51(1), pages 93-102.
    14. Onur A. Koska, 2019. "A consumer-surplus standard in foreign acquisitions, foreign direct investment, and welfare," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(1), pages 149-179, February.
    15. Chen, Pao-Lien & Tan, Danchi & Jean, Ruey-Jer “Bryan”, 2016. "Foreign knowledge acquisition through inter-firm collaboration and recruitment: Implications for domestic growth of emerging market firms," International Business Review, Elsevier, vol. 25(1), pages 221-232.
    16. Aileen Kennedy & Kathy Keeney, 2009. "Strategic partnerships and the internationalisation process of software SMEs," Service Business, Springer;Pan-Pacific Business Association, vol. 3(3), pages 259-273, September.
    17. Beamish, Paul W. & Lupton, Nathaniel C., 2016. "Cooperative strategies in international business and management: Reflections on the past 50 years and future directions," Journal of World Business, Elsevier, vol. 51(1), pages 163-175.
    18. Kabongo, Jean D. & Okpara, John O., 2019. "Timing and speed of internationalization: Evidence from African banks," Journal of Business Research, Elsevier, vol. 102(C), pages 12-20.
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    20. Gomez-Selemeneva, D., 2009. "Factores Claves para la Sostenibilidad de las Alianzas Inter-organizativas: Un caso de Estrategias de Cooperación [Key Factors for Sustainability of Inter-organizational Alliances: A Case for Coope," MPRA Paper 31274, University Library of Munich, Germany.
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