The impact of strategic alliances to resolve problems arising from globalization: The case of medium sized firms in Greece

Abstract

Previous research investigating the competitive advantage of medium sized firms has consistently emphasised on the importance of strategic alliances as key factors of business survival in the global economy. The ability to identify and operate in a particular market enables firms to exploit a range of protective measures against increased competition, which is the major characteristic of the global economy. This paper presents the results of a survey, in 228 medium sized firms divided in three main sectors (services, manufacturing and retailing). The goal of the survey is to show the ability of medium sized firms to operate in a highly competitive environment and how strategic alliances can help them to do so. More specifically the paper analyzes the motives, attitudes and underlying conditions for entering and maintaining alliances activity as a means of protecting the medium sized Greek firm in a global environment. The findings showed that forming strategic alliances has been prescribed as an important tool for maintaining a competitive advantage. In addition, the concept of strategic alliances is growing in appeal to medium sized companies because of cost savings companies achieve in their executing operations. Many medium sized companies form alliances in search of better quality, technology or cheaper production costs.