Analyzing the Role of Strategic Flexibility in the Design of International Strategic Alliances: A Study in the General Contracting Industry

Document Type : Original Article

Author

Department of Strategy, Faculty of Business Management, University of Tehran, Tehran, Iran.

Abstract

Decision-making regarding the mechanisms and prevailing patterns of international strategic alliances falls within the realm of the most sensitive and challenging decisions for alliance partners. Alliances that neglect this issue face numerous complexities in achieving their expected goals and benefits. Due to recurrent conflicts among partners, they are more likely to encounter failure. The present research aims to focus on the design of international strategic alliances, evaluating and analyzing the strategic flexibility component in selecting and employing one of two types of designs: equity-based or contractual, in organizing international strategic alliances. Given the exploratory nature of this research, data has been randomly collected from 180 general contracting companies with a history of collaboration with their international counterparts. Regression modeling is employed for data analysis. The research findings indicate that strategic flexibility, due to organizational processes and managerial capabilities, is conducive to the formation of equity-based strategic alliances, while the two components of organizational resources and organizational learning are the primary drivers for selecting the contractual pattern in international strategic alliances.

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Main Subjects

References

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History

  • Receive Date: 01 January 2024
  • Revise Date: 16 January 2024
  • Accept Date: 22 January 2024

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