A Strategic Alliance as a “Hybrid Organization" Essay

633 WordsSep 9, 20143 Pages
To achieve goals in highly competitive environment, especially under globalization impact, firms, apart of utilizing their own opportunities, have other choice - to benefit from external resources (Gumus and Apak, 2011). This external growth may be achieved through mergers, acquisitions or strategic alliances. In fact, strategic alliances are known as the simplest form of cooperation between organizations, announced having a positive effect on the wealth of firms. It is a kind of collaboration between two or more independent companies “involving allocation of ownerships, operational responsibilities, financial risks and financial rewards” (Marciukaityte, Roslelley and Wang, 2009). Strategic alliances are also called “hybrid organizations” due to the fact that alliance partners mutually share resources, values and internal processes. As opposed to traditional organization such mix of different elements and efforts allows to avoid insufficient cooperation that may exist between traditional firms. Hybrid organization has particular “relationships with suppliers, employees and customers, which are based on mutual benefits and sustainability outcomes”(Haigh and Hoffman, 2012). Contrary, traditional organization’s relationships are generally functional and transactional in nature. Moreover, while traditional organizations are aiming for self-serving benefits, creating traditional goods and services, strategic alliances are creating hybrid goods and services, becoming more sustainable. Thus, strategic alliances have “hybrid” long “relationships that combine elements of spot market contracting with elements of internal organization to create a unique form of governance” (Mayer and Teece, 2008). The nature of cooperation between companies-partners of strategic alliances let them obtain necessary resources and knowledge from each other, and make decisions at lower costs.

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