AN EMPIRICAL INVESTIGATION OF ALLIANCE PORTFOLIO STRATEGIES OF MEDIUM AND LARGE COMPANIES OPERATING IN ROMANIA

In this paper we have investigated the alliance portfolio strategies of best performers medium and large companies operating in Romania. Adapting, shaping, and stabilizing alliance portfolio strategies were investigated based on an existent theoretical framework, but extending the criteria used to evaluate each type. Based on a qualitative and quantitative analysis of the answers provided by 46 companies we found divergent patterns of adoption of alliance portfolio strategies by companies in our sample. From the 46 companies considered in our study 16 implemented a shaping alliance portfolio strategy. Thus, these companies used alliances to shape the environment according to company’s strategy. In addition, 17 companies implemented an adapting alliance portfolio strategy using alliances to adapt, respectively 13 companies resorted to a stabilizing alliance portfolio strategy using alliances to stabilize their environment. At molecular level, we found that most of medium size firms resorted to an adapting alliance portfolio strategy (11 companies) while most of large companies appealed to a shaping alliance portfolio strategy (15 companies). We also found that most MNC resorted to alliances either to shape or stabilize the environment as part of their strategy in Romania. Using alliances to adapt to their environment as part of their strategy was mostly used by Romanian companies. Moreover, we found that all companies operating in a younger industry resorted to a shaping alliance portfolio strategy, while for those operating in more mature industries the patterns were more diverse and equilibrated. For all these variables the alliance portfolio strategies were also separated investigated in detail. The findings in this paper might have implications for international business and strategic management scholars, particularly those studying strategy topics in Eastern Europe.