Strategic Alliances
This week, we are looking at strategic alliances. Under what circumstances would you agree with someone who said that alliances are very risky?
A dubious strategic alliance is one when one partner is deceitful and inclined to reap a benefit for himself at the cost of other individuals who a part of the alliance. Examples of such a situation include concealing important information, not honoring promises, and shirking responsibilities. According to Williamson:
"opportunism extends the conventional assumption that economic agents are guided by considerations of self-interest to make allowance for strategic behavior (Mababaya, 2003, pg 138 )."
Thus, those people who lack in moral principles are prone to be deceitful and it is possible they would abuse a strategic alliance by seeking a gain for themselves at the expense of others.
It is common knowledge that most strategic alliances comprise of people who have some self-interest at heart and are not entirely honest in what they have committed to. But it is absolutely imperative that when an individual or a firm enters into a strategic alliance, they should gauge the attitude of whom they are getting involved with. When formulating alliance related investments, an organization becomes susceptible to any partner's future actions. These are the risks with a strategic alliance because of which I would agree with someone that they should avoid it.
Which alliance motivations do you think are the most compatible with each...
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