Cross-Border Strategic Alliance

A cross-border strategic alliance is an international cooperative strategy in which firms with headquarters in different nations decide to combine some of their resources and capabilities to create a competitive advantage.


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Taking place in virtually all industries, the number of cross-border alliances continues to increase. These alliances too are sometimes formed instead of mergers and acquisitions.


Even though cross-border alliances can themselves be complex and hard to manage, they have the potential to help firms use their resources and capabilities to create value in locations outside their home market.


In general, cross-border alliances are more complex and risky than domestic strategic alliances. However, the fact that firms competing internationally tend to outperform domestic-only competitors suggests the importance of learning how to diversify into international markets.