International Strategic Alliances: A Case Study of Korean Enterprises in Malaysian Market

Abstract

How can Korean multinational enterprise ensure control over their international strategic alliances operations in developing markets? Does control evolve? What are some of the implications of alternate control mechanisms? These are some of the question that the current study addresses within the context of Malaysian and the developed Korean multinational enterprise. In doing so, it replicates and refines previous researches conceptualization of international strategic alliances control and extends their framework to include partner firms. A qualitative, cross-case research methodology was employed to analyze the three dimensions of international strategic alliance control, namely the mechanisms through which control is exerted, the extent of control achieved by the partners and the focus of activities over which partners exercise control. Two in depth case studies were conducted with flourishing Malaysian and Korean strategic alliance partner firms in order to provide an in-depth understanding of how control operates within dissimilar business and cultural environments. The case study results indicated the use of multiple control mechanisms within the strategic alliances and provided detail as to how each mechanism exerted control. Further, the results illustrated the evolving nature of international strategic alliances control and identified two types of international strategic alliances namely Technology-based (Type 1) and Market knowledge, Distribution-based (Type 2) international strategic alliances. From the cross - case study results, it can be inferred that both Malaysian and Korean multinational enterprise operating within the scope of international strategic alliances need to employ control mechanisms that have a value adding future orientation in order to enhance mutual benefits.