Advantages and Disadvantages of Strategic Alliances in International Business
Advantages and Disadvantages of Strategic Alliances in International Business

Author(s): Klavdij Logožar
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Strategic alliances; Competitive advantage; International business; Cultural differences
Summary/Abstract: The paper studies strategic alliances and their role in international business. The importance of strategic alliances in the global economy has increased. Strategic drivers for interfirm co-operation between alliance partners are market growth, cost reduction, reducing risk, and access to knowledge. The author focuses on the advantages and disadvantages of strategic alliances. The challenges of managing international strategic alliances are also discussed. Ensuring the success of strategic alliances between international firms is more difficult due to alliance partners’ differences in national, organizational and professional culture. International strategic alliances are critically important to a firm success and coping with globalization, deregulation, and developments in information and transportation technology.

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