An implementation model of an alliance

A business interpretation of the term globalization is based on the assumption that products or services being produced must be competitive in all parts of the world and they must remain competitive all of the time. This represents quite a departure from previous concepts that most likely involved some type of international expansion with perhaps a single project. As national borders become increasingly more flexible, world-wide competition for construction projects will continue to increase. This idea of participating in a global economy is changing the traditional approaches used by construction companies in their strategic planning. In addition, dwindling financial resources have caused many governments to consider alternative methods to the standard practices of generating revenue for public construction projects. The US construction industry, looking forward to the 21st century, will likely be getting more involved in international projects and is searching for the best possible vehicles to enhance their position in this market. Forming alliances with foreign firms may be one alternative. An alliance is a cooperative agreement between two entities that generally encompasses a long-term commitment from the participants and is built more on trust and mutual sharing of responsibilities than on contractual agreements. A previous article by the writers based on a research project on International Alliances dealt with why companies form alliances and the benefits derived from forming alliances. The purpose of this paper is to adapt the findings of that same research project into an implementation plan, one which will address the key issues required to formulate an alliance with a foreign firm.