International alliances: how they contribute to managing the interorganizational challenges of globalization

Abstract

This paper systematizes the benefits that can be attained from international horizontal alliances in managing the different interorganizational challenges that arise in the process of globalization. It applies the perspective of a firm in the early phase of internationalization, dependent on preserving its domestic position. The paper emphasizes that an alliance can contribute not only through the direct strategic advantages it generates, but also by supporting the firm's management of other interorganizational dependencies – horizontal as well as vertical, domestic as well as international. A matrix is presented which highlights the potential contributions of an international alliance with respect to four types of interorganizational challenges. The paper then discusses different types of factors that influence whether these potential contributions can be realized. The theoretical approach is finally applied in an analysis of the strategic international alliances of two Swedish food companies.

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