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A Web of Alliances in the Global Telecommunication Industry
Unformatted Document Text:  Global Telecommunication 7 The Interorganizational Alliance Network Although previous research on organizational networks has mainly focused on interorganizational alliances or mergers among organizations, the forms of organizational alliances may vary by the degree to which organizations are linked. Clearly, there are a variety of ways to define interorganizational networks in understanding the pattern of interorganizational alliances. In order to examine global strategic alliances in the auto industry, Nohria and Garcia- Pont (1991, p.105) distinguished interorganizational alliances into nine types of networks: mergers, acquisitions, equity partnership, consortia, joint ventures, technology licensing and development agreements, supply agreements, manufacturing collaborations and marketing agreements. It is a categorical classification, using ordinal scales. Their classification is based on observations from the manufacturing industries. Thus, it may not be useful for studying the service-based industries. Barringer and Harrison (2000) classified those interorganizational alliances into several types in terms of tightness of coupling. They suggest that joint venture, network and consortia are tightly coupled relationships based on the configuration of ownerships. These interorganizational alliances imply that organizations intentionally interact with other organizations, thus they are involved with the relationships of power exchange based on resource distribution. In contrast, nonequity-based alliances are considered as loosely coupled relationships based on shared resources. Those loosely coupled relationships have the purpose of getting or exchanging information.

Authors: Chon, Bum Soo. and Barnett, George.
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Global Telecommunication 7
The Interorganizational Alliance Network
Although previous research on organizational networks has mainly focused on
interorganizational alliances or mergers among organizations, the forms of organizational
alliances may vary by the degree to which organizations are linked. Clearly, there are a variety of
ways to define interorganizational networks in understanding the pattern of interorganizational
alliances. In order to examine global strategic alliances in the auto industry, Nohria and Garcia-
Pont (1991, p.105) distinguished interorganizational alliances into nine types of networks:
mergers, acquisitions, equity partnership, consortia, joint ventures, technology licensing and
development agreements, supply agreements, manufacturing collaborations and marketing
agreements. It is a categorical classification, using ordinal scales. Their classification is based on
observations from the manufacturing industries. Thus, it may not be useful for studying the
service-based industries.
Barringer and Harrison (2000) classified those interorganizational alliances into several
types in terms of tightness of coupling. They suggest that joint venture, network and consortia are
tightly coupled relationships based on the configuration of ownerships. These interorganizational
alliances imply that organizations intentionally interact with other organizations, thus they are
involved with the relationships of power exchange based on resource distribution. In contrast,
nonequity-based alliances are considered as loosely coupled relationships based on shared
resources. Those loosely coupled relationships have the purpose of getting or exchanging
information.


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