An effective way to measure the performance of cooperative strategies with competitors in Taiwan�??s small business.


Hao-Wei Yang*, Kai-Fu Yang Chung-Hsin Yang and Chih-Yang Chao

Forming strategic alliances with competitors has become a heated issue not only in practice but also in academic research. Firms involved in the alliance should dedicate their knowledge, skills, technology, and other valuable resources to achieve collective goals and to create cooperative performance. Drawing from an intellectual capital perspective, this paper attempts to answer three major questions: How does a firm contribute its intellectual capital to be able to cooperate with its competitor? What are the elements of cooperative strategies with competitors? And, how does a firm measure cooperative performance? In this study, a strategic alliance led by a focal company in the supermarket industry in Taiwan was investigated. In order to collect qualitative data, the study conducted an in-depth face-toface interview with nineteen CEOs in the alliance. They, together, have defined five key cooperative strategies and critical indicators for measuring cooperative performance. As well, the study also developed important intellectual capital which is necessary for implementation of those cooperative strategies. This practice-oriented study contributed a more complete exploration of intellectual capital, cooperative strategy, and performance measurement in practice as well as in research.

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