Problems in global strategic alliance management for European defence manufacturing firms

Abstract

PurposeThe purpose of this paper is to investigate the problems which occur for European defence manufacturers in cross‐border strategic alliances.Design/methodology/approachThe survey uses a large‐scale questionnaire to collect data from a sample of firms from four European defence manufacturing countries and identifies those countries outside Europe with which the firms are forming alliances.FindingsThis paper finds that the degree of problems differs for firms from different countries.Research limitations/implicationsThe paper is limited in that it does not collect data from partner firms outside Europe. The paper aims to identify differences which exist between the firms' experiences with alliances.Originality/valueThe paper is important as its shows that some firms from different European countries experience more problems in certain key areas in cross‐border strategic alliances than others.

RD internationalization, domestic technology alliance, and innovation in emerging market

“…In economics, the alliance is formed by two or more business entities which share common strategic interest, under the condition of the fierce market competition, in order to share the market, common use of resources and other strategic objectives, the alliance form a loose cooperation mode through a variety of agreements and contracts, which has complementary advantages and is superior of risk-sharing [ 86 , 87 ]. With the accelerating global economic integration and the increasingly fierce market competition, scientific and technological innovation is gradually replacing the traditional production factors such as labor, capital and land to become the most important core resources and key elements of enterprise development, and scientific and technological innovation has become the fundamental source for enterprises to obtain competitive advantages for sustainable development [ 56 , 57 ], It is under this background that technology alliance is formed [ 88 ].…”

The Evolution of European Security: From Confrontation to Cooperation

“…Colin Butler noted, "spending is political in nature and often states engage in protectionism." 78 Driven by sovereign interests and the sense of self-defense, leading European defense industries will not be willing to share their technologies and scientific advancements. Yet, in times of economic recession, protectionism in the field of domestic labor in the defense sector is even more sensitive than ever.…”

Economic, social and institutional conditions of network governance

“…It reduces the need to monitor others' behavior, formalize procedures, and create completely specified contracts (Macauley, 1963; Powell, 1990). Trust also facilitates long‐term relationships between firms (Ring and Van de Ven, 1992; Sahay, 2003) and is an important component in the success of strategic alliances (Browning et al , 1995; Butler, 2007; Gulati, 1995). Within organizations, trust contributes to more effective implementation of strategy, greater managerial coordination (McAllister, 1995), and more effective work teams (Lawler, 1992).…”