Local And Virtual Alliances As A Supplemental
Contributor To Firm Performance |
The degree of participation of local alliances defines
formal and informal relationships designed to share the
knowledge base of a particular region. Local alliances
have played an unprecedented role in firm performance in
the past.
A firm's involvement with those alliances can often
be a measurable component to overall success. Today,
the inclusion of virtual alliances may often serve as a
supplement to the facilitation of relationships and
support networks. The access to relationships often
serves as an entry way for new product introduction.
The knowledge spillover when engaged in a business or
personal relationship with a party in the same or
similar industry can often encourage innovative
activity. This notion that a reciprocal relationship
amongst alliances exists has been demonstrated amongst
firms in similar geographic locations. The localization
of the relationship and the strength of the tie is what
ultimately encourages this knowledge spillover. Yet,
today the communication barrier of support networks has
extended far beyond the geographically bounded region
into the virtual universe. This research embodies the
significance of local alliances on firm performance with
a new perspective on the inclusion of virtual
relationships in future firm success. 2012 |