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Success factors in sustaining strategic alliances between large and small businesses in the IT sector in South Africa

Thesis (MBA)--Stellenbosch University, 2008. / ENGLISH ABSTRACT: Collaborative strategies such as strategic alliances are being adopted by small and large companies
to gain a competitive advantage in a fast changing global and local business environment.
Companies are recognising the value of achieving their business goals through mutually beneficial
strategic alliances. Strategic alliances provide a more flexible, non-permanent means through
collaborative engagement between companies to attain complementary services, skills, products and
resources.
This study aimed to contribute to an understanding of the nature of strategic alliances between large
and small companies within the information technology (IT) sector in South Africa and to highlight
the particular dynamics, challenges and success factors from the perspective of these companies.
The research question posed was: "What are the success factors that impact on the sustainability of
strategic alliances between large and small companies within the IT industry in South Africa?"
In this study, a strategic alliance was defined as a "co-operative arrangement between two or more
local and / or global firms that invest in a collaborative effort to achieve their individual and mutual
goals and positively impact their competitive positioning". Limited research had been conducted on
strategic alliances in South Africa in general and no research was available on the IT sector. This
exploratory research study was conducted to provide an overview of the dynamics and issues
related to strategic alliances keeping the respective contexts of small and large companies in mind.
This study contributes to an understanding of the respective contributions of small and large
companies in complementing their respective strengths and experiences to achieve business
objectives. This area of study supports government policies and initiatives in promoting the
collaboration between large and small companies in developing the economy and the small business
sector in particular. Within a dynamic and fast-growing information communications technology
(ICT) sector, there are increasing opportunities for strategic alliances between small and large
companies within the IT sub-sector.
A qualitative, inductive research approach was used to determine the kind of alliances that existed,
test the themes identified in the literature review in relation to the South African context and
identify new insights based on the experiences of respondents engaged in strategic alliance
relationships. This approach supported the assumption that the circumstances explored are complex
and dynamic and require flexibility both in the approach and methods used. Semi-structured, face-to-face interviews were used as the instrument or method of data collection. An interviewer guide
was developed to direct the interview. Themes and key factors identified through the literature
review provided input into the structure and content of the interviews.
Three small and three large companies from the IT sector were interviewed as part of this study.
The number of employees was used as the primary indicator of company size using the guidelines
provided by the DTI. Research results indicated that the main motivations for engaging in strategic
alliances included risk sharing, access to new markets, expanded product service offerings,
complementary skills and learning, funding support and enhancing competitive positioning. The
primary motivator that all respondents identified was 'collaborative bidding for business'.
Forty-three percent of alliances of the small and large companies interviewed were with small
companies. Small companies indicated a wider range of alliances and included partnering with
micro enterprises to large multinationals in their alliance formations. Strategic alliances were
monitored and measured by all respondents. Quantitative measures were used most frequently and
included measures such as profitability, delivery to project deadlines, meeting service levels and
delivery to baseline commitments made in the solutions submitted to clients. Qualitative measures
were identified but applied in a less structured way.
Challenges identified by small and large companies included achieving an understanding of the
culture and needs of small and large companies, managing the financial challenges, relationship
management and dealing with co-opetition where competitors are incorporated into the strategic alliance.
Respondents all indicated that the value of strategic alliances outweigh the cost of establishing and
managing strategic alliances particularly between small and large companies. The success factors
identified were largely similar between small and large companies. The highest ranked factors
identified by small companies were partner selection and benefit analysis whereas leadership and
strategy were the main priority factors for large companies.
It is recommended that further research be conducted into measuring and monitoring methods that
assists in monitoring the effectiveness of alliances and to develop the capacity of strategic alliance
managers in managing the complex of relationships between alliance members, alliance delivery
performance and client demands and influences on the strategic alliance. / AFRIKAANSE OPSOMMING: Klein en groot maatskappye gebruik toenemend samewerkingstrategiee soos strategiese alliansies
om 'n kompeterende voorsprong te verkry in 'n vinnig veranderende globale en plaaslike
besigheidsomgewing. Maatskappye besef die waarde daarvan om hulle besigheidsdoelwitte te bereik
deur wedersydse voordelige strategiese alliansies. Strategiese alliansies verskaf 'n buigsamer, nie-permanente
metode, deur middel van samewerking tussen maatskappye, waarmee bykomende
dienste, vaardighede, produkte en hulpbronne verkry kan word.
Hierdie studie beoog om by te dra tot die begrip van die aard van strategiese alliansies tussen groot
en klein maatskappye in die Informasie Tegnologiesektor (IT-sektor) in Suid-Afrika en om die
spesifieke dinamika, uitdagings en suksesfaktore vanuit die perspektief van hierdie maatskappye te
belig. Die navorsingsvraag is: "Wat is die suksesfaktore wat 'n impak het op die volhoubaarheid
van strategiese alliansies tussen groot en klein maatskappye in die IT-bedryf in Suid-Afrika?"
In hierdie studie word 'n strategiese alliansie gedefinieer as 'n "samewerkingsooreenkoms tussen
twee of meer plaaslike en / of globale maatskappye wat bele in 'n samewerkingspoging om hulle
individuele en gesamentlike doelwitte te bereik en wat 'n positiewe uitwerking het op hulle
kompeterende posisionering." Beperkte navorsing is al gedoen oor strategiese alliansies in Suid-Afrika
in die algemeen en geen navorsing was beskikbaar oor die IT-bedryf nie. Hierdie
ondersoekende navorsingstudie is gedoen om 'n verkennende oorsig te verskaf van die dinamika en
kwessies verwant aan strategiese alliansies, spesifiek binne die konteks van onderskeidelik klein en
groot maatskappye.
Hierdie studie dra by tot 'n begrip van die onderskeie bydraes van klein en groot maatskappye in
soverre hulle onderskeie sterk punte en ervarings mekaar komplementeer om besigheidsdoelwitte te
bereik. Die navorsingsveld ondersteun ook die regering se beleid en inisiatiewe om samewerking
tussen groot en klein maatskappye te bevorder en daardeur die ekonomie, spesifiek die
kleinsakesektor, te ontwikkel. Binne 'n dinamiese en snelgroeiende Informasie- en
Kommunikasiesektor (IKT-sektor), is daar toenemend geleenthede vir strategiese alliansies tussen
klein en groot maatskappye binne die IT-subsektor.
'n Kwalitatiewe, inleidende navorsingsbenadering is gebruik om die tipe alliansies wat bestaan te
bepaal, die geidentifiseerde temas uit 'n literatuurstudie, toegespits op die Suid-Afrikaanse situasie,
te toets en nuwe insigte, gebaseer op die ervarings van die respondente in strategiese
alliansieverhoudings, te identifiseer. Hierdie benadering het die aanname bevestig dat die
omstandighede wat ondersoek is, kompleks en dinamies is, en buigsaamheid in beide die
benadering en metodiek, vereis. Gedeeltelik gestruktureerde, persoonlike onderhoude is gebruik as
die navorsingsinstrument of -metode van dataversameling. 'n Vraelys is opgestel as riglyn vir die
onderhoude. Die temas en kernfaktore, wat geidentifiseer is uit die literatuuroorsig, het insette vir
die struktuur en inhoud van die onderhoude verskaf.
Drie klein en drie groot maatskappye in die IT-bedryf is as deel van hierdie studie nagevors. Die
getal werknemers is gebruik as die belangrikste bepaler van die maatskappy se grootte volgens die
riglyne verskaf deur die Departement van Handel en Nywerheid (DHN). Die navorsingsresultate het
aangedui dat die belangrikste beweegredes vir die sluit van strategiese alliansies die volgende is:
gedeelde risiko's, toegang tot nuwe markte, uitgebreide produk- / diensaanbiedings, aanvullende
vaardighede en opleiding, steun vir befondsing en die bevordering van kompeterende posisionering.
Die belangrikste beweegrede wat alle respondente geidentifiseer het, was "gesamentlike tender vir
besigheid" .
Drie-en-veertig persent van die alliansies van die klein en groot maatskappye wat ondersoek is, was
met klein maatskappye. Klein maatskappye het 'n wyer verskeidenheid van alliansies, insluitend
vennootskappe van mikro-ondernemings tot groot multinasionale maatskappye, in hulle
alliansievormings, ingesluit. Strategiese alliansies is deur alle respondente gemonitor en gemeet.
Kwantitatiewe meetinstrumente is die meeste gebruik en het maatstawwe bevat soos
winsgewendheid, lewering binne die projek se spertye, die nakom van diensvlakvereistes en die
nakom van die aanvanklike ooreenkoms in die oplossings voorgehou aan die kliente. Kwalitatiewe
meetinstrumente is ook geidentifiseer, maar minder gestruktureerd toegepas.
Die volgende uitdagings is deur beide klein en groot maatskappye geidentifiseer: om'n begrip te vorm van die kultuur en behoeftes van klein en groot maatskappye, bestuur van die finansiele
uitdagings, verhoudingsbestuur en die hantering van kooptering waar mededingers in die strategiese
alliansie ingesluit is.
Al die respondente het aangedui dat die waarde van strategiese alliansies die koste verbonde aan die
sluit en bestuur van strategiese alliansies oortref, veral tussen klein en groot maatskappye. Die
suksesfaktore wat geidentifiseer is, was hoofsaaklik dieselfde by klein en groot maatskappye. Die
faktore wat die meeste waardeer is deur die klein maatskappye, was die keuse van vennote en
voordele-analises, terwyl leierskap en strategie die twee hooffaktore vir die groot maatskappye was.
Daar word aanbeveel dat verdere navorsing gedoen word oor meetinstrurnente en
moniteringmetodes wat kan help om die effektiwiteit van alliansies te monitor. Die kapasiteit van
strategiese alliansiebestuurders om die verskeidenheid van verhoudings tussen alliansielede,
alliansie-diensleweringvermoens en klientvereistes en invloede op die strategiese alliansie, te
bestuur, moet ook ontwikkel word.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/15041
Date12 1900
CreatorsSmith, Esme Joy
ContributorsButler, Martin, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis
RightsStellenbosch University

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