The role of dynamic cultural theories in explaining the viability of international strategic alliances

Abstract

Purpose Many managers of Indo‐French alliances consider culture to be a failure, rather than a success factor because they address the national or corporate level for cross‐cultural comparisons. In contrast, this study proposes using the Douglasian Cultural Theory (CT) to address the transactional level of culture. In so doing, it aims to overcome some of the limitations of the national, corporate and transactional approaches and provide a systematic framework for discussing the viability of international alliances. Design/methodology/approach An analysis of 48 ethnographic interviews and field studies was conducted in 25 Indo‐French alliances. Findings Through an analysis of the ethnographic interviews and field studies conducted, the paper offers the following guidelines to managers for the design of viable alliances: the commonly‐cited interdependence of the hierarchical and competitive solidarities is not sufficient to ensure the viability of international alliances; the presence of a third solidarity seems essential; an analysis of failed alliances reveals that fatalism is not the third solidarity we are looking for; and an analysis of viable alliances shows that the egalitarian solidarity plays a role in ensuring the viability of international alliances by building a bridge between the hierarchical and competitive solidarity, thereby preventing gridlocks. Research limitations/implications Major methodological limitations of this study include over‐emphasis on ethnographic interviews for data and use of unsystematic criteria for identifying solidarities in Indo‐French alliances Originality/value Unlike the paper's predecessors, it recommends that cultural plurality, not cultural domination, leads to viable alliances. International managers often tend to impose their own thought styles on others, thereby neglecting the inherent wisdom of other thought styles. The paper stresses that cultural diversity without duality leads to viability.

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