Types of cooperation and networks

Chapter 5 reviews the traditional forms of strategic alliance and network. It shows that there are many different types, ranging from supplier contracts to equity joint ventures, and all have different levels of interaction and independence. Networks are another well-established form of cooperation; these can embrace several, sometimes many, firms and other partners. This chapter discusses dominated, equal partner, and coordinated networks. This chapter also describes a variety of taxonomies proposed for classifying alliances. It notes that Yoshino and Rangan (1995) and Dussauge and Garrette (1999) have perhaps the most attractive typologies of alliance forms among the many on offer. Yoshino and Rangan categorize alliances into non-traditional contracts, equity alliances, and joint ventures. Dussauge and Garrette identify international expansion joint ventures, vertical partnerships, diversification alliances, complementary alliances, shared supply alliances, and quasi-concentration alliances. The chapter concludes with some suggestions as to which forms may be most appropriate for which situations.