The influence of inter-firm investments on dyadic strategic alliances in supply chains : a thesis presented in partial fulfilment of the requirements for the degree of Master of Supply Chain Management at Massey University, Albany, New Zealand

Abstract

“If you want to walk fast, walk alone. But if you want to walk far, walk together”- Rattan Tata. The purpose of this research is to provide insights about the influence dynamics of investments in an equity strategic alliance in supply chains. The investigation is focused on the influence of the inter-firm investments on a dyadic strategic alliance, and the relevant contribution towards achieving supply-chain management objective. Considering the research methodology, implications of inter-firm investments on the critical success factors of a strategic alliance are collected from eight companies in India and New Zealand, and synthesised to explain the overall influence on the strategic alliance; and the contribution to increase supply-chain surplus. In correspondence to the findings, study has explained how inter-firm investments can be used as strengthening tool for a strategic alliance; how it contributes to achieve supply-chain management objectives. Various creative implications/practices are highlighted to exploit an equity strategic alliance. By exploring the influence dynamics of investments in an equity strategic alliance, this study also corelates the subject to eliminating silo-mentality from the components of complete supply chain. Thus, neutralization/redistribution of negotiating power could be achieved in supply chains. However, this research is confined to New Zealand and India; capital companies; researcher’s philosophical constraints; research approach and so the results are not inevitably generalizable in all settings. Also, the research excludes the barriers to enter equity strategic alliance, which open the doors for further research. The conclusions encourage supply-chain participants to upgrade their strategic alliance with other participants to an equity strategic alliance. The analysis provides a solid background to consider making this decision and to broaden their perspective to external supply chain. The results also enable the participants to consider implementing other creative practices to benefit from the upgraded alliance and increase overall supply-chain surplus. In terms of originality, empirical investigation of the relationships between the inter-firm investments, the strategic alliance, and the supply chain management objective, in this study, contributes to the Supply Chain Management knowledge. This study adds another dimension to the study of equity strategic alliances, that also unlocks the direction for future research.