Strategic Alliances: Constrasting Korean/US Preferences

Strategic Alliances: Constrasting Korean/US Preferences

By David Bruce Montgomery, Seoil Chaiy
1996Working Paper No. 1373

This study examines several contrasts and similarities between Korean and US executive approaches to certain aspects of strategic alliances. The underlying research premise is that better understanding of the typical similarities and differences in strategic approaches between executives from different countries should facilitate more harmonious and successful cross border alliances. Specifically a sample of Korean and US executives were asked to consider a potential future alliance which they would expect to pursue. In this context they were asked to identify the time frame they would expect, to prioritize results such as profits, market share, and learning, and to make conjoint trade-offs between six attributes of the potential alliance: 1) what they must give, 2) what they will get, 3) the home area of a prospective partner, 4) the time frame of the prospective alliance, 5) the degree of competitive overlap between the partners, and 6) the firm's equity position in the partnership.