Environmental Factors and Measures That Affect the Success of International Strategic Alliances

Abstract

Strategic alliances help firms to enter new markets tactically, elude government restrictions quickly, distribute technologies effectively, and model leading firms swiftly. International strategic alliances (ISAs) are providing firms strategic flexibility, enabling them to respond to changing market conditions, and establishing effective passages for achieving global scale in enterprise operations. There are several key environmental factors that affect the success of the ISAs and those factors include cost saving in production and Research and Development (RD and the successful ISAs. Besides, the results indicated a negative relationship between culture distance and the successful ISAs.