Abstract
The authors present a framework within which to decide when a firm should choose a single global strategic alliance partner, when regional alliances are more appropriate, and when it should use multiple local partners. Strategic factors proposed as determining this choice refer to: (1)economies of scale; (2)competitive pressure; (3)market and environmental certainty; and (4)global coordination. Operational considerations that constrain the choice involve: (1)market restrictions; (2)resource availability; (3)fiduciary risk; and (4)adaptation needs. These two sets of factors interact to suggest the appropriate geographical scope of strategic alliances. Two case examples are evaluated within this framework; one dealing with a global strategic alliance, the other with local strategic alliances.
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