TITLE:
Characteristics of Strategic Partnerships between Differently Successful Companies
AUTHORS:
Drago Dubrovski
KEYWORDS:
Globalization, Partnership, Strategic Alliances, Crisis, Synergy
JOURNAL NAME:
Journal of Financial Risk Management,
Vol.9 No.2,
June
2,
2020
ABSTRACT: Globalization and rapid technological development, with all their dimensions, influence the change of the strategic orientations of companies in a way that they seek to ensure their continued existence and accelerated development by an in-depth cooperation with other organizations, which, if the four conditions explained are met, can have the characteristics of a strategic partnership. The general objective of a business or equity strategic partnership is to achieve synergy on the basis of integrated, combined and tailored in-depth collaboration, thus an additional joint effect that an individual company would not be able to achieve on its own, while the concrete objectives in each individual alliance and for each participant may be very different. Such an in-depth cooperation also occurs in cases where one of the participating companies is facing severe difficulty, both during the crisis prevention and crisis management periods. However, in these cases, due to the extremely increased risks, some methods of forming alliances are much more common and useful, while others, whose impact on joint crisis management would be too small, are typical only for the alliances between successful companies.