7207ENG Advanced Topics: Strategic Alliances and Joint Ventures Report

This report provides a comprehensive review of strategic alliances and joint ventures, focusing on their key differences and applications within an engineering management context. The study examines the opportunities and benefits of both concepts, including increased capacity, access to new technology, and risk sharing, while also addressing potential barriers such as cultural differences and imbalances in expertise. The report highlights the importance of strategic alliances and joint ventures for small and medium enterprises (SMEs) in fostering technological growth and adapting to rapidly changing markets. Furthermore, it explores avenues for research and policy changes to enhance the diffusion of these collaborative strategies, emphasizing the need for effective implementation and management to ensure successful outcomes. The paper also outlines the research context, literature review, and research methods used to analyze the subject matter, supported by relevant references.

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

Engineering and Management 2
3.1 Summary of the opportunities for
exploiting this concept
When we will talk about opportunities of SA
(strategic alliances) and JV (joint ventures)
then in terms of input, opportunities are money,
time, and efforts. Moreover, revenue and
expenses will be equally shared between the
firms hence overall business will grow
efficiently 3.
3.2 Summary of the benefits of the SA and JV
 Provide opportunities of gaining new
expertise and increased capacity.
 Allow firms to obtain new skills of
technology.
 Advantage of risk sharing 2
3.3 Summary of the barriers to the widespread
application of the SA and JV
 In SA and JV, there can be an
imbalance in Expertise, Capital and
other assets while combining the
venture.
 Diverse cultures and work styles can
result in poor co-operation 4.
3.4 Avenues for research, policy change to
enhance the rate of diffusion of SA and JV
To make the concept successful following steps
should be adopted: Identify, valuate, construct,
define, create, ensuring and finalize. Moreover,
to get more clarity difference between the both
can be further defined as:
 The joint venture is a complex type of
strategic alliance. As against, a strategic
alliance is a type of corporate
collaborating.
 The firms, which undertake to form the
joint venture, do not exist as
independent firm anymore. Conversely,
the firms undertaking strategic alliance
exist as independent firm 4.
4. Conclusion and recommendations
Currently, most of the organizations are
revolving towards the strategic alliance, with
the idea of handling uncertainty and risk, as
well as to face market and change in
technology. Oppositely, joint ventures can
entree the knowledge, funds and assets through
all the companies to venture; hence, it is a
blend of finest attributes of those entities,
without modifying the parental entity 3.
5. References
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[1] M. Weaver, Strategic Alliances as Vehicles for International Growth. London, U.K.: The
Blackwell Handbook Of Entrepreneurship, 2017.

Engineering and Management 3
[2] M. Dodgson, Technological collaboration in industry: strategy, policy and
internationalization in innovation. London: Routledge, 2018.
[3] K.R. Harrigan, Strategic alliances as agents of competitive change. Coumbia: Elgar Book
Series, 2015.
[4] Key Differences. (2017, June) Key Differences. [Online].
https://keydifferences.com/difference-between-joint-venture-and-strategic-alliance.html
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