Balancing Differences and Similarities within The Global Economy: Towards A Collaborative Business Strategy

Abstract

Abstract Collaborative business strategies have been increasingly employed by global companies as a more viable alternative to traditional scale and arbitrage economies. The way companies design and implement their global strategies is closely related to the globalization trends. It has been observed that the process of globalization has impacted the definition of contemporary business strategies. Contemporary business strategies are defined by global collaborative efforts, innovative business processes and potential to achieve competitive advantage at the supranational level. A paradigm shift has resulted in geographic expansion, different organizational structures and relations, and overall higher degree of variety and complexity of business activities. It is also shown that selection of the appropriate strategic choice also depends on regional and cultural factors, and therefore requires expertise and the ability to perceive differences and similarities in order to accomplish effective cross-cultural collaboration. Furthermore, close inter-cultural interaction is one of the crucial requirements for the development of innovative business strategies and attainment of competitive advantage in contemporary global markets.