STRATEGIC ALLIANCE AND COMPETITIVENESS: THEORETICAL FRAMEWORK

Abstract

Strategic alliances, which are cooperative strategies in which firms combine some of
their resources to create competitive advantages, are the primary form of cooperative
strategies. Research on strategic alliance in the past few decades has suggested that
strategic alliance can enhance competitiveness. Whatever forms joint venture, equity
based or nonequity based, strategic alliance assist in ensuring the economic value
addition, multidimensional inter-firm network, and inter-organizational coordination. In
this paper we have tried to identify how strategic alliances enhance competitiveness and
some factors which foster strategic alliances. Finally, we have identified some research
gap that will help in conducting future research regarding strategic alliance issues.