What do Firms From Transition Economies Want From Their Strategic Alliance Partners Harvard Case Solution & Analysis

The financial system has active transition from central planning to a free market can be duplicated in transition. On today's global landscape, there are several important countries with economies in transition, all in various stages of transition and with varying degrees of success. Nevertheless, much is known about this important sector of the global economy. As enterprises seek outside alliances with firms from countries with economies in transition, it is important to know that these companies want to alliance partners. To learn more, we conducted a survey, poll managers of private firms of the two largest and most strategically important countries in transition economies: China and Russia. We found that while the Chinese and Russian firms often look forward to the same things as their counterparts in developed countries with regard to unions, they are also interested in other things not normally associated with alliances: political influence, exemption from bribery, extortion and protection from or even violence. In addition, we found that due to differences in the institutional environment in the two countries, Chinese firms are always looking for the same thing, of alliances, as Russian companies despite the surface similarities between the two economies. Based on these findings, we provide guidelines for companies seeking alliance partners in countries with economies in transition to assist them in determining if the alliance is right for them and plan accordingly. "Hide
by Michael N. Young, David Ahlstrom, Garry D. Bruton, Yuri Rubanik Source: Business Horizons 12 pages. Publication Date: March 15, 2011. Prod. #: BH427-PDF-ENG

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