Abstract
This paper aims to unbundle the antecedents of competence-based synergy in the strategic alliance formation process by employing the ARCTIC framework. The current research provides a new empirical application of the ARCTIC framework to reveal the success factors of reciprocal synergies of the Renault–Nissan–Mitsubishi strategic alliance in the automotive industry. By taking a resource-based view on the sources of competitive advantage, the current paper contributes to theoretical and practical issues of global strategic alliances as part of the existing literature on strategic management, international business, and corporate finance. By bridging qualitative and quantitative research methods, the paper provides validity to the ARCTIC framework with an application of the real option valuation. A conceptual model of research helps practitioners and scholars to explore critical success factors of alliance formation and to predict a competence-based synergy of strategic alliances. Future research may explore the institutional context of strategic alliances, specifically, exploring the impact of the French and Japanese governments on the Renault–Nissan–Mitsubishi alliance’s synergies.
Highlights
This paper aims to operationalize and test the ARCTIC framework to assess the prerequisites of competence-based synergy in the strategic alliance’s formation process and to employ real options application to value such types of synergies. (Chirjevskis and Joffer 2007)
The ARCTIC framework was already tested empirically, employing several case studies of M&As (Čirjevskis 2020a, 2020b, 2020c, 2021a), it has not been sufficiently tested through studies of strategic alliances
The current research explored the prerequisites of a competence-based synergy in strategic alliance and identified three steps for investigating whether core competence transfer in a strategic alliance process would be an important source of synergies
Summary
This paper aims to operationalize and test the ARCTIC framework to assess the prerequisites of competence-based synergy in the strategic alliance’s formation process and to employ real options application to value such types of synergies. (Chirjevskis and Joffer 2007)provided the ARCTIC framework (A—Advantage, R—Relevance, C—Complexity of Competence to absorb, T—Time of Integration, I—Implementation Plan, C—Cultural Fit) to explore compatibility, complementarities, and transferability of core competencies of the collaborative partners and to predict competence-based synergy in M&A deals and strategic alliances. This paper aims to operationalize and test the ARCTIC framework to assess the prerequisites of competence-based synergy in the strategic alliance’s formation process and to employ real options application to value such types of synergies. Published research papers on the ARCTIC framework (Čirjevskis 2020a) were expertise by stating that the author has shown the empirical evidence supporting the applicability of the ARCTIC framework based on the author’s perception of the firm’s competencies. It would be more persuasive with evidence of post-merger deals performances. It was argued that, based on the types of M&A (horizontal or vertical integration) and other forms of collaborative strategies (strategic alliances, cooperative arrangements, etc.), the applicability of the ARCTIC model can be different
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