Abstract
<p>International strategic alliances (ISAs) are one of the partnership options that may be used by firms in achieving their goals. It is an inter-firm cooperation where firms commit some of their resources and capabilities towards the alliance to create a competitive advantage. Yemeni services industry need to improve its competitiveness and the quality of services it provides to the people and therefore, forming a strategic alliances with foreign partners is considered one of the best strategies. Although the involvement of Yemeni’s service firms in ISAs are evidence, but there is no previous study conducted to determine whether these alliances do create value to the firms or not. Therefore, this study is conducted with the objectives of determining whether Yemeni’s service firms’ involvement in ISAs do create value to the firms or not and what kind of value creation outcomes are created by this ISAs. Alliances may also come in various forms with different degree of cooperation. This study will also look at the influence of the degree of cooperation is ISAs on the value creation outcomes. Survey of 214 service firms’ managers revealed that ISAs do create value to the organization with financial value top the list. Improvement in customer service and better return on investment (ROI) are among the most important advantage gain by these service firms from their involvement in ISAs. This study also posits a significant positive relationship between the degree of cooperation in ISAs and the value creation outcome.</p>
Highlights
Over the last two decades, there has been an increase in international strategic alliances (ISAs) in many different industries worldwide, due to intense global competition and the constantly growing demand for new technologies (Zamir, Sahar, & Zafar, 2014)
This study is conducted with the objectives of determining whether Yemeni’s service firms’ involvement in ISAs do create value to the firms or not, and what kind of value creation outcomes are created by this ISAs
This study focuses on service industry, the principles and reasons behind alliances are similar as service industry stress on customer service, advertising and others
Summary
Over the last two decades, there has been an increase in international strategic alliances (ISAs) in many different industries worldwide, due to intense global competition and the constantly growing demand for new technologies (Zamir, Sahar, & Zafar, 2014). Partnership through strategic alliances enable firms to respond quickly and flexibly towards accelerating change in technology, competition, and customer preferences (Webster, 1992). The success of ISAs relies on various factors and one of them is the degree of cooperation between participating firms. This is demonstrated by Anderson and Weitz (1992) where they found a positive relationship between the degree of cooperation in ISAs and alliances outcomes such as efficiency, profitability, and effective marketing activities. High-level cooperation tends to produce higher overall productivity gains than low-level cooperation in strategic alliances
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
