The week's pick
Reseach Article
A Comparative Study of Alliance Strategies between U.S. MNEs Taiwanese Subsidiaries
| Fourth Annual International Business Conference |
| Foundation of Computer Science USA |
| IBC - Number 1 |
| August 2011 |
| Authors: Ching-Sung Wu |
| 7b12237f-ddba-4a9e-825c-31e062f59d9f |
Ching-Sung Wu . A Comparative Study of Alliance Strategies between U.S. MNEs Taiwanese Subsidiaries. Fourth Annual International Business Conference. IBC, 1 (August 2011), 1-6.
Abstract
For those Western multinational enterprises (MNEs) such as HP and IBM under the pressure of ongoing E-Business transformation, strategic alliances can be a very useful way. In this paper, we compare two MNE subsidiaries (HP and IBM) in Taiwan to analyze their e-service alliance strategies and the similarities and differences. We find that Taiwanese firms are interested in forming strategic alliances with MNEs, and they have particular interest in forming horizontal alliances aimed at accessing new markets and exchanging resources, sharing risk, achieving economies of scale. We find the size of Taiwanese firm which alliance with MNEâs subsidiary is approximately large firms, and the large domestic firm will likely undertake the non-equity type alliance. We argued that alliance can be classified into three distinct types for MNE subsidiaries in a developing country: TYPE A: Market Seeking, TYPE B: FSA Enhancement and TYPE C: Substitute.
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