The issue of srategic alliance as a business strategy becomes more important in the global market as technological and economic environments are changing rapidly. The primary objective of this thesis is to investigate such strategic alliances in order to draw some implications for effective project management. The research extends dynamic models developed by researchers in organization science, and conducts in-depth longitudinal case studies with data on three project-based alliances in civil engineering, architecture, and plant product/market segmentation, using each event in the alliances' history as a unit of analysis.
This thesis consists of four parts. The first part contains a literature review and a research framework. The research framework is composed of three revised models, i.e., collaborative ventures evolution model by Arino and Torre, control and partner learning model by Makhija and Ganesh, and process and outcome discrepancy model by Kumar and Nti. The second part describes the characteristics of construction industry and construction alliances, and selection of the cases. The third part deals with case studies of two joint ventures and one consortium. Each case is analyzed in terms of five important stages, i.e., i) delivery system of selecting form by financing and separability, ii) initial alliance-formation stage of initial conditions as suggested by Arino and Torre, iii) control and learning viewpoint of partner learning by Makhija and Ganesh, iv) operation stage of process and outcome discrepancies by Kumar and Nti, and v) success and failure of alliance measured by alliance management and project management aspects. Finally, based on the above analysis, we suggest delivery system, discrepancy flow and learning-action-reaction loop type, managerial suggestions for the success of strategic alliance, a checklist for project-based alliances, and revised research models.
The major findings of this study are summarized as follows:
First, the definition and yardstick for judgement of success and failure in a construction alliance by alliance management and project management aspects is suggested to evaluate performance of alliance.
Second, it is better to select a joint venture as the delivery system when financing is important, and consortium when separability exists in the project.
Third, positive and negative learning-action-reaction loop types in initial alliance-formation stage and discrepancies flows of favorable, neutral, and unfavorable types in operation stage are analyzed to recognize the cautious path and loop.
Fourth, absorptive capacity works as both positive and negative reinforcements of loop and path in the initial alliance-formation stage and operation stage.
Fifth, critical factors for the success of strategic alliance in each stage are
1) promotion of positive loops, management of initial conditions, external change, and relationship quality, reinforcement of positive absorptive capacity in initial alliance-formation stage,
2) removal of differential learning by control processes and absorptive capacity, and application of internal and external learning in control and learning viewpoint,
3) promotion of favorable flow, management of external forces and managerial mechanism, reinforcement of positive absorptive capacity, consideration of tradeoff of synergy cost and coordination cost for equity balance in operation stage,
4) management of events and discrepancies which occur frequently in both early and late period of project.
In addition, a checklist of application and feedback for project-based alliances, and revised research models for better explaining are presented. We believe discrepancy flow and learning-action-reaction loop type, managerial suggestions for the success of strategic alliance, and revised research models can be applied to other industries as well.
