A Holistic Perspective On Strategic Alliances For Indian Managers
In the classical business landscape, the scope, scale and technology base of business firms used to be limited opined Ghemawat (2002). Firms were attuned to thinking in terms of what a firm could do by itself stated Das &Teng(2000); and Colombo (2003). Thus firms thought strictly in terms of what raw materials the firm could fetch from suppliers, and how the firm could better serve customers by itself according to Grant (1991). Thus, a firm and only a firm was the unit of analysis observed Barney (2001). Jensen (1993) traced the fact that, with the advent of the industrial revolution, the scale, scope and technology base of firms increased. Given this scenario it became slowly evident for firms, that a firm alone doesn't have the bandwidth of resources and capabilities to cater to the growing market, pointed out by authors such asSørensen, & Reve (1998). Thus, from both a Resource Based View (RBV) propagated by Wernerfelt (1984) & Mahoney & Pandian (1992), and Industrial Organizational Theory (IOT) expounded by Willig & Salop & Scherer, (1991) perspective; it made sense for firms to join in efforts with other firms to create value for customers, as well as for the firm. Thus, it was the beginning of a shared view of firms towards increased collaboration observed Evans (2001). Given this development, firms were interested towards joining hands for mutual cooperation and gain stated Artz & Brush (2000). This over a period of time led to the genesis of increased focus of firms towards, the formation of strategic alliances stated authors such as Dacin, Oliver & Roy (2007).