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  • 1.
    Hyder, Akmal S.
    et al.
    Department of Business Studies, University of Gävle, Gävle, Sweden.
    Abraha, Desalegn
    Högskolan i Skövde, Institutionen för teknik och samhälle.
    Institutional factors and strategic alliances in eastern and central Europe2008Ingår i: Baltic Journal of Management, ISSN 1746-5265, E-ISSN 1746-5273, Vol. 3, nr 3, s. 289-308Artikel i tidskrift (Refereegranskat)
    Abstract [en]

    Purpose - The study deals with institutional factors that have impact on the operation of east-west alliances. Applying Kostova and Roth's terminology of institutional and relational contexts, this paper aims to address how alliance relationship based on resources, learning and performance organizes and functions, and how institutional factors influence the alliance relationship. Design/methodology/approach - To properly highlight the role of institutional factors, eastern and central Europe (ECE) is divided into four categories, namely fast adapters, high and low medium adapters and slow adapters. A total of 20 alliances operating in different country categories have been selected for the study. In all alliances, foreign partners are Swedish firms and engaged in the manufacturing industry, Semi-structured interviews containing both a fixed set of questions and a set of open-ended questions have been used for data collection. Findings - The impact of institutional factors on firms in slow-adapting countries was uniformly high, the initiatives taken were usually fruitless and ineffective. In the case of medium-adapters, the impact was largely mitigated over time as alliances passed through the different stages. The least impact was, as expected, observed among the alliances in fast-adapting countries. However, the result needs to be taken with some caution as the data include alliances where partners come from a single western country. Practical implications - For direct investment, managers need to take the institutional factors seriously as ECE countries undergo a transition period and the economical situations of these countries shows a wide variation. For example, if need of return is quick, the managers should invest in a fast-adapting country or in a medium-adapting country but not at all in a slow-adapting country. Originality/value - This paper makes a unique contribution by focusing institutional factors which affect strategic alliances in ECE. One future study can concern cultural impact on business environment and new business development in ECE. Another interesting area of research could deal with medium-adapting countries because the members of this group show different level of adaptation and performance.

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