Role of Strategic Alliances in International Business: An Empirical Study

Abstract

Strategic partnerships have become an essential component of international corporate strategy in today's globalised and competitive economic world. These alliances, established through joint ventures, licencing contracts, research partnerships, and distribution alliances, enable businesses to capitalise on one another's advantages and acquire a competitive edge. In international trade, strategic alliances have several advantages, including as increased market access and market growth, cost- and risk-sharing, knowledge and technology transfer, and competitive advantage. Cultural differences, developing trust, choosing partners, and legal compliance are just a few of the difficulties involved in creating and managing strategic partnerships. Clear objectives and a common vision, good communication and cooperation, complementary competencies and resources, flexibility and adaptation, and a well-defined governance structure are all factors that contribute to the success of strategic partnerships. By understanding and addressing these factors, companies can harness the power of strategic alliances to overcome challenges, tap into new growth opportunities, and thrive in the global business landscape.