The Coevolution of Trust, Control and Partner Selection in Malaysia–Indonesia Strategic Alliances

By Ahmad Bashawir Abdul Ghani and Muhammad Subhan.

Published by The Global Studies Journal

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

In recent years, international strategic business cooperation has attracted great attention in both international management theory and practice. Several prominent examples demonstrate that inter-firm alliances can no longer be viewed as second best solutions but must be recognized as efficient forms of internationalization. Strategic alliances are a common strategy for entering new countries. More recently, the Malaysian press has been inundated with news about the emergence of many more such alliances between Malaysian and Indonesian companies. Direct investment in Indonesia involves a relatively high cost as well as benefit for Malaysian companies. In this article, the specific management problems of international strategic business cooperation between Malaysian and Indonesian companies including the criteria used by Malaysian companies to select their business partner, how the relationship management varies with the characteristics of the Malaysian partner and the resulting effects on the process of trust building are analyzed and a systematic approach for their solution is presented. This article ends with a short summary and the managerial implications for business managers are highlighted.

Keywords: Strategic Alliances, Partner Selection, Business Cooperation, Malaysia, Indonesia

Global Studies Journal, Volume 2, Issue 2, pp.89-104. Article: Print (Spiral Bound). Article: Electronic (PDF File; 1.190MB).

Dr. Ahmad Bashawir Abdul Ghani

Chairman of the Department of International Affairs and Senior Lecturer, College of Law, Government and International Studies, University Utara Malaysia, Sintok, Kedah, Malaysia

Dr. Ahmad Bashawir Abdul Ghani is currently a senior lecturer in international business management with the College of Law, Government and International Studies at University Utara Malaysia, where he has taught international business for 12 years and has supervised about 10 business research projects. He holds an MBA in financial management from the University of Hull, UK and a PhD in commerce from Murdoch University, Australia. His research and consultancy interests cover the theoretical and applied aspects of international business, business research, strategic alliances, strategic/policy modelling, and business economics. He has also published in a wide range of international and Australian and New Zealand journals. In addition, he has spoken at conferences throughout the world on matters dealing with international business management. Prior to joining University Utara Malaysia, he has previously worked in a number of public and private sector organizations in Malaysia and abroad, where he has been involved in economic, strategic and business research projects spanning most sectors of the economy. He is currently the Chairman of the Department of International Affairs of College of Law, Government and International Studies at University Utara Malaysia.

Muhammad Subhan

PhD Candidate, College of Law, Government and International Studies, University Utara Malaysia, Sintok, Kedah, Malaysia

Muhammad Subhan is currently a doctoral candidate at the College of Law, Government and International Studies at University Utara Malaysia (UUM) in which his research emphasizes on Port Business Governance and Strategy. He has contributed to various international conferences in US, Indonesia, Malaysia, Thailand, and Egypt. He holds an M.Sc from the National University of Malaysia (UKM) and a bachelor degree in Civil Engineering from Syiah Kuala University. Prior to joining UUM, he has previously worked a couple of years with some private organizations in Indonesia, Malaysia and other international bodies in addition to research and teaching works with several public universities in Malaysia and Indonesia during last ten years.

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