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Negotiating for Strategic Alliances

In: The Palgrave Handbook of Cross-Cultural Business Negotiation

Author

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  • Andreas M. Hartmann

    (Tecnológico de Monterrey)

Abstract

Alliances play a vital role in today’s economy, which is characterized by value chains that often transcend national borders. As each alliance is different, there is a need to negotiate specific terms, including the scope of activities, equity participation, and the contribution of each of the partners. A vital part of the setup process is the negotiation of the original agreement. Sophisticated alliance contracts contain provisions for containing the partners’ opportunism, stepwise implementation, contingent agreements, and clauses for dispute resolution. The operational phase of the alliance can be framed as an ongoing negotiation process, which will lead to a new round of renegotiations or a breakup. Given the degree of complication and the evolutionary nature of alliance, it is recommended that each partner designate interface managers for managing the ongoing relationship.

Suggested Citation

  • Andreas M. Hartmann, 2019. "Negotiating for Strategic Alliances," Springer Books, in: Mohammad Ayub Khan & Noam Ebner (ed.), The Palgrave Handbook of Cross-Cultural Business Negotiation, chapter 3, pages 53-70, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-00277-0_3
    DOI: 10.1007/978-3-030-00277-0_3
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