Achieving success in technology alliances: The Rover‐Honda strategic collaboration

Abstract

Dynamic changes within global markets are creating a need for different strategies for firms in the pursuit of competitive advantage. International technology alliances are one mode of organising the acquisition of competitive technologies which is especially important in technology‐intensive industries. However, managers have an especially difficult challenge when trying to deal with problems of high technical risk, frequent changes in technologies, different cultural and managerial styles and perspectives. This article addresses these issues as it examines the planning and implementation of the international technology alliance between Rover and Honda, during the past fourteen years. By most criteria used, this alliance was highly successful, and the article discusses not only the areas of successful technical impact which the alliance had on these companies, but also the insights learned by Rover from the management process of the alliance. It also develops a framework of issues which managers can use to implement and manage international technology alliances.