Engineering and Management: Review of Strategic Alliances and Joint Ventures

Running Head: ENGINEERING AND MANAGEMENT 0
Engineering and Management
Strategic Alliances and Joint Ventures
(Student Details:)
9/9/2018

Engineering and Management 1
Review of Strategic Alliances and Joint Ventures
YOUR NAME
This paper presents a review of Strategic alliances and Joint ventures, in order to identify real
difference between the both. This study is focused on main key differences and connectivity of
the two concepts discussed above. Strategic alliances and Joint ventures enable corporations
with harmonizing skills to make profit from through another's assets. When they have common
expertise, manufacturing and real estate growth, and they want to increase their sales
worldwide, these concepts are used. In a joint venture, the corporations begin and finance in a
new corporation that is jointly possessed by both of the parental businesses 1. However,
strategic alliance is a lawful contract between two or more firms to share admittance to their
tools, trademarks and other possessions. A strategic alliance does not create a new company.
Keywords: Strategic alliances; Joint
ventures; small and Medium Enterprises; SA;
JV
Many smaller firms are advantageous over
bigger firms and can, easily collaborate with
large firms, to contribute importantly to
technological growth.
1. The Research Context
Confronted with quickly changing markets,
tools, governance and enhanced risks, many
firms (small and medium enterprises) are
implementing substitute organizational
prototypes based on collaboration. Cooperative
interfirm actions include methods that sort from
comfortable sharing of statistics to joint
ventures, and all ways of settlements in
between. Expressions such as cooperative
strategies, linkages and inter organizational
collaboration has developed to describe
business relations between companies 1.
2. The Literature Review
These innovative small organizations enjoy
diverse external relationships vertically as well
as horizontally. Hence, it will be argued that a
number of restraints upset small firm
associations including the less number of key
personnel, issues of associating with large
firms, and unsuitable public policies 2. The
cooperative nature of technology growth
suggests that it has become important and
beneficial for all SMEs to participate in
strategic alliances and joint ventures to sustain
in the market 3.
3. Research Methods