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.