Enterprise Dynamic Alliance

Author: Jia Ping
Publisher:
Publish Date: 2003-05-01
Features: Abstract The theory of enterprise dynamic alliances has a broad theoretical foundation. The theory of enterprise capabilities emphasizes the decisive role of a firm's unique resources in forming competitive advantages. The development opportunities and space for a firm are the diffusion of the scope of its unique resources in the market. When a firm needs a certain rare resource that is possessed by other firms, and the resource is difficult to obtain, the firm often requires establishing cooperative relationships with other firms that possess this resource, leveraging alliances to obtain the necessary operational resources. Enterprise dynamic alliances are multi-enterprise joint ventures based on core capabilities. The explanation from the transaction cost theory is that dynamic alliances have stable transaction relationships and facilitate supervision, enabling them to autonomously decide on issues of market internalization.