Document Type

Journal Article

Department/Unit

Department of Management

Title

What do firms from transition economies want from their strategic alliance partners?

Language

English

Abstract

A financial system engaged in active transition from central planning to free market may be dubbed a transition economy. On today's global landscape, there are several important transition economies, all at various stages of transition and with differing degrees of success. Yet, much is not known about this important sector of the world economy. As outside enterprises seek alliances with firms from transition economies, it is important to know what these firms want from alliance partners. To learn more, we conducted a study interviewing managers of private firms from the two largest and most strategically important transition economies: China and Russia. We found that while Chinese and Russian firms often hope for some of the same things as their counterparts in mature economies as regards alliances, they are also interested in other things not normally associated with alliances: political influence, relief from paying bribes, and protection from extortion or even violence. Moreover, we discovered that because of differing institutional conditions in the two countries, Chinese firms are not always looking for the same things from alliances as are Russian firms-in spite of surface similarities between the two economies. Based on these findings, we provide guidelines for firms seeking alliance partners in transition economies, to assist them in determining if an alliance is right for them and planning accordingly. © 2010 Kelley School of Business, Indiana University.

Keywords

International expansion, Strategic alliances, Transition economies

Publication Date

2011

Source Publication Title

Business Horizons

Volume

54

Issue

2

Start Page

163

End Page

174

Publisher

Elsevier

DOI

10.1016/j.bushor.2010.11.005

ISSN (print)

00076813

This document is currently not available here.

Share

COinS