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7 - Joint Alliances

from Part II - Agency Change

Published online by Cambridge University Press:  10 November 2016

Kaijun Guo
Affiliation:
Baushang Bank, Beijing
Maurice Yolles
Affiliation:
Liverpool John Moores University
Gerhard Fink
Affiliation:
Vienna University of Business and Economics
Paul Iles
Affiliation:
Glasgow Caledonian University
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Summary

Introduction

So far we have considered the development of the cultural agency, its social nature, its strategic nature, its consciousness, and what it is that makes it intelligent. Perhaps rather as in a Monty Python comedy sketch … now for something completely different. Instead of exploring the immanent attributes of the agency, we shall instead explore the way in which two or more autonomous agencies in an external environment might connect for their mutual benefit.

Two or more organizations entering into a voluntary co-operation can be called joint alliances, joint ventures, and partnerships (Kelly and Parker, 1997; Fitzgerald, 2000). While the term alliance may be seen as a generic form of co-operation (Glaister and Buckley, 1997: 200), a joint alliance may take on forms that include joint ventures, mergers and acquisitions. They occur when legally distinct organizations come together purposefully through two or more sponsoring partners (Geringer, 1991; Muralidharan & Hamilton, 1999).

When organizations enter into a joint alliance, they always face a potential for change. However, the nature of that potential depends on the type and purpose for the joint alliance that is intended or develops. Alliances always address Human Resource Development (HRD), since the capacity of the organization to respond to the change implied directly involves the human resources that compose the organization(s) involved. The nature of the alliance will depend upon how it has been formed, for instance through stimulation by host government insistence, the desire for rapid market entry, increased economies of scale, risk-spreading, gaining, and knowledge transfer. They have become important, (Schuler, 2001), even though they entail risk (Shen, Wu & Ng, 2001).

In this chapter we shall review theoretical and empirical studies of alliances. One brief study will examine Mauritius as part of an interest in developing an analytical framework for understanding alliance foundation, formation, development, implementation, and restructuring, with particular reference to human resources issues. Another study will examine a particular case in Central and Eastern Europe. A framework will develop that will be applied to a specific case study of an alliance. This involves the Czech Academic Link Project (CZALP) between Liverpool John Moores University, UK, and the Technical University of Ostrava in the Czech Republic. This will illustrate the usefulness of the framework and theory, and identify principles relating to the development of alliances to guide further research in this area.

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