STRATEGIC ALLIANCES - GATEWAY TO THE NEW EUROPE

A form of corporate renewal, strategic alliances are attractive in the context of the Single European Market. With the prospect of a more unified Europe, the development of alliances among firms without an established manufacturing and service operation in Europe is more urgent than ever. The potential for a 'two-track' programme for Europe also suggests that firms located in nations from both tracks. However, before taking the plunge, companies should assess the longer term implications of any alliance. Not all alliances are the same, and many alliances are of only limited duration. What types of alliances are possible? and what forces lead to their formation and dissolution? This article addresses these questions and, what they mean for strategic alliance activity in Europe in the 1990s.