In the contemporary business world nobody survives alone. An organization that wants to succeed must follow the rapidly changing environment. Major requirements for successful activity on the market are openness to innovations and the ability to enter into an alliance with other organizations and even competitors.
“Strategic” or “corporate” alliances formed at high levels often fail to deliver real benefits to the partners. Analysts and managers will argue eternally over what caused each link-up to fail. Some blame egos and clashing cultures; others cite business conflicts and ruthless competition. Yet these cases of unfulfilled promises typically share one syndrome: the creation of the big alliance came to be seen as an end in itself rather than a means to a broader strategic goal (Gomes-Casseres, 1998). Therefore, an alliance without a comprehensive strategy behind it has a large probability of failure. Moreover, not all strategies lead to success.
This research involves exploring strategic alliances in the computer hardware sector, the most innovative sector of the economy. Using the example of IBM, I aim to show that a strategic alliance can be successful if it is driven by innovation. In other words, two companies that form an alliance for the purpose of development and advancement of a new product or technology are likely to be successful. Admittedly, the presence of the innovation factor may not necessarily be the main reason for the success of the strategic alliance. Nevertheless, alliances based on joint innovation development are more lasting and productive than those that are not. I also hope to show how innovations help companies determine a strategy for their alliance.
The following section presents a literature review on the strategic alliance, its purpose, and its expectations. The subsequent two sections present the research questions and model the problem, using the EFQM Excellence Model to estimate the success of the strategic alliance in achieving its purpose. The last two sections discuss the methods and data necessary for this study, and then present the conclusion.
Table of Contents
1. Introduction
2. Literature review
2.1. Definition
2.2. Types of alliances
2.3. Alliances in the High-tech industries
2.4. Types of Innovation
2.5. Review of recent IBM alliances
3. Research Questions
4. Theoretical Model
Hypothesis 1.
Hypothesis 2.
Hypothesis 3.
Hypothesis 4.
5. Methods and Data
5.1. Quantitative Research (or Surveys)
5.2. Qualitative Research
6. Conclusions
Research Objectives and Themes
The primary objective of this study is to analyze how innovation acts as a catalyst for the success of strategic alliances within the computer hardware industry. The research explores the dynamics of IBM's various alliances to determine whether shared innovation leads to more sustainable and productive partnerships, ultimately aiming to provide a strategic framework for management.
- Role of innovation in strategic alliance success
- Application of the EFQM Excellence Model in business evaluation
- Strategic partnership strategies in the high-tech sector
- Comparison of qualitative and quantitative research methodologies
- Analysis of recent IBM alliance case studies
Excerpt from the Book
2.5. Review of recent IBM Alliances
Partnering is becoming popular among the biggest and most profitable companies in the world. Lye’s study (2004) showed that more than 20% of the revenue generated from the top 2,000 U.S. and European companies comes from alliances; HP/Cannon, Intel/Microsoft, Yahoo!/SBC, PepsiCo/Starbucks, Sony/Ericsson, and Cisco/IBM are some well-known successful alliances. As many as 20,000 U.S. alliances were formed between 1988 and 1992. IBM alone made up more than 400 alliances in the U.S. and abroad (Day, 1995).
Since 1985, alliance formation has been growing at an annual rate of over 25%. The average return on investment (ROI) is 17%, which is 50% higher than the ROI of non-alliance activities. Additionally, alliances outperform more conventional business development approaches, such as venture capital and mergers and acquisitions (Pekar and Allio, 1994).
Summary of Chapters
1. Introduction: Outlines the necessity of strategic alliances in the modern business environment and establishes the focus on innovation-driven partnerships using IBM as a case study.
2. Literature review: Defines strategic alliances and their various types while exploring the role of innovation and the EFQM model in high-tech business contexts.
3. Research Questions: Formulates the core inquiry regarding how innovation influences alliance success and poses specific questions about partner selection and alliance types.
4. Theoretical Model: Introduces the EFQM Excellence Model as the conceptual framework to assess organizational progress and test the proposed study hypotheses.
5. Methods and Data: Describes the mixed-methods approach, utilizing both quantitative surveys and qualitative unstructured interviews to gather data for the research.
6. Conclusions: Synthesizes the findings, highlighting that innovation and trust are critical factors for successful, long-term strategic alliances in the computer hardware industry.
Keywords
Strategic Alliances, IBM, Computer Hardware, Innovation, EFQM Excellence Model, Technology Transfer, Business Strategy, Quantitative Research, Qualitative Research, Joint Ventures, Partner Selection, Product Development, High-tech Industry, Corporate Synergy.
Frequently Asked Questions
What is the core focus of this research?
The research investigates the strategic alliances within the computer hardware industry, specifically examining how innovation drives the success of these partnerships.
What are the primary themes discussed?
The study covers alliance definitions, categories of innovation, the EFQM Excellence Model framework, and the strategic management of technology-based partnerships.
What is the main research question?
The central question is how the innovation factor influences the overall success of a strategic alliance in the computer hardware business.
What scientific methods are applied?
The author employs a mixed-methods approach, combining quantitative surveys for broad data collection and qualitative unstructured interviews for in-depth exploration.
What does the main body of the work address?
The main body examines literature on alliances, establishes a theoretical model based on EFQM criteria, and reviews historical and current IBM strategic alliances.
Which keywords characterize this paper?
Key terms include Strategic Alliances, IBM, Innovation, EFQM Excellence Model, Business Strategy, and High-tech Industry.
How does the EFQM model assist in this study?
The EFQM Excellence Model serves as a conceptual framework to measure excellence and organizational performance across nine criteria to evaluate the success of alliances.
What was a notable failure discussed by the author?
The author highlights the Apple and IBM alliance of 1992 as a significant failure, noting that lack of trust and structural issues led to massive financial losses.
- Quote paper
- Frédérik Arns (Author), 2005, An investigation of the role of Innovation in Strategic Alliances in the Computer Hardware Business, Munich, GRIN Verlag, https://www.grin.com/document/46711
