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MTM matrix: a new analytical framework for strategic alliances

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  • Majid Kasmai, Junichi Iijima

Abstract

Intense global competition has forced firms to look for some effective strategy to cope with it. Firms should innovate in different areas, from technology management to manufacturing process, from plant economics to marketing, and should do it quickly. Strategic alliance is a strategy that allows firms to refresh their competitive strengths in response to globalisation. In recent years, there have been many papers written on strategic alliances. However, current publications do not answer several essential questions. How could we define what type of strategic alliance is appropriate for a specific firm with a specific product and technology? What are the possible strategic alliances with a specific partner? What should be the necessary level of a future partner? In order to answer these questions, we introduce the concept of MTM-space. MTM stands for Manufacturing ability, Technological level, and Market potentiality. In an MTM-space we can map a firm's position with any specific product. Then we introduce two MTM-matrices. In these matrices, taking both high and low levels for each dimension of manufacturing ability, technological level, and market potentiality of a firm, for each product, we define eight possible MTM levels for each firm. These matrices help firms to find appropriate partners for their specific needs. To evaluate our models, we conducted analyses of several strategic alliance cases in the semiconductor industry.

Suggested Citation

  • Majid Kasmai, Junichi Iijima, 2002. "MTM matrix: a new analytical framework for strategic alliances," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 4(1), pages 45-56.
    • Handle: RePEc:ids:ijbpma:v:4:y:2002:i:1:p:45-56
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