chapter  10
12 Pages

- Choosing Best Alliance Partners and Allocating Optimal Alliance Resources Using Fuzzy Multi-Objective Dummy Programming Model

A strategic alliance may be defined as a cooperative arrangement between two or more independent firms that exchange or share resources to gain a competitive advantage. Since the 1980s, strategic alliances have been widely discussed (Porter and Fuller, 1986; Harrigan and Newman, 1990; Auster 1994) and hundreds of papers have been published about this issue. The essential motives of strategic alliances are “synergy effects” as represented in the following equation:

V S V S k K( ) ( ); 1, , k

…∑∪ > = (10.1) where V(⋅) denotes the satisfaction (or value) function and Sk denotes the kth alliance firm. When Equation (10.1) is satisfied, firms can share better satisfaction levels than their original states through strategic alliances.