Business alliances in the economy of EU countries

Keywords: Business alliance, market integration, strategic alliances, competition strategies, partnership, innovative business alliances.

Abstract

The activities of business alliances in the EU are being transformed by the aid of the policy implementation of industrial alliances development, which provides for a wide network formation of stakeholders in reducing the dependence of member states on raw materials of third countries. The purpose of the academic paper lies in assessing empirically the business alliances effectiveness in the EU based on the case studies analysis on creating strategic alliances. Methodology. The case method has been used in the course of the research in order to analyse the activities and effects of business alliances within the established network for cooperation of the European Raw Materials Alliance (ERMA). The results demonstrate the uncertainty in the strategic business alliances effectiveness in the EU; it is difficult to assess the potential quantitative effect from the company’s resources synergy – alliance members in the short-term prospects. Despite the well-established principles, the choice of the alliance management form as joint venture, the company’s market value has decreased. The advantages of the business alliance include the supply chain diversification of of raw materials from Third World countries to EU countries for industrial production. The theoretical and practical research value lies in supplementing the transaction costs theory and the theory of resources, explaining the business alliances creation. In practice, companies - members of business alliances combine the features of both theories in order to take into accounts both costs and synergies from resource integration.

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Author Biographies

Liudmyla Yarosh-Dmytrenko, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine.

PhD in Economics, Assistant Professor, Faculty of Economics, Department of International Economics and Marketing, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine.

Iryna Martyniak, Ternopil Ivan Pul’uj National Technical University, Ternopil, Ukraine.

PhD in Economics, Senior Lecturer, Faculty of Economics and Management, Department of Economic Cybernetics, Ternopil Ivan Pul’uj National Technical University, Ternopil, Ukraine.

Alla Domyshche-Medyanyk, State Trade and Economic University, Uzhgorod, Ukraine.

Chairman of the cycle commission of hotel and tourism disciplines, PhD, Department of Tourism and Hotel and Restaurant Business, Separated structural subdivision “Uzhgorod trade and economic professional college” State Trade and Economic University, Uzhgorod, Ukraine.

Valentyna Lukianets-Shakhova, National Academy of Internal Affairs, Kyiv, Ukraine.

Candidate of Law Science, Associate Professor of Constitutional Law and Human Rights Department, National Academy of Internal Affairs, Kyiv, Ukraine.

Tetiana Yasinska, Lviv Polytechnic National University, Lviv, Ukraine.

Associate Professor, PhD (Economics), Associate Professor, Department of Management and International Entrepreneurship, Lviv Polytechnic National University, Lviv, Ukraine.

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Published
2022-07-04
How to Cite
Yarosh-Dmytrenko, L., Martyniak, I., Domyshche-Medyanyk, A., Lukianets-Shakhova, V., & Yasinska, T. (2022). Business alliances in the economy of EU countries. Amazonia Investiga, 11(53), 249-258. https://doi.org/10.34069/AI/2022.53.05.25
Section
Articles