Exploring Stakeholders’ Support  in an International Equity Placement Strategic Alliance

Harimukti Wandebori; Harm-Jan Steenhuis; Aard J. Groen

doi:10.22146/gamaijb.22291

Exploring Stakeholders’ Support in an International Equity Placement Strategic Alliance

Harimukti Wandebori, Harm-Jan Steenhuis, Aard J. Groen

(Submitted 22 February 2017)

(Published 30 August 2018)

Abstract

An International Equity Placement Strategic Alliance (IEPSA) is a strategic alliance of shared ownership between partners of different nationalities. In 1998, the Indonesian government initiated the IEPSA to privatize its State-Owned Enterprises (SOE). Problems arose due to the lack of stakeholders’ support, although it was able to improve the performance of the SOE. Variables within the stakeholders’ support and the relationship among stakeholders were the keys to bring the IEPSA into prevalence; they comprised of its transparency, share price, the degree of the internal relationship, fulfilment of the budget deficit, company restructuring, unprecedented moment, restricted shares in the market, the existence of the floor price, and the plan for the IEPSA. The research reveals that the dimensions of the share price and the degree of the internal relations are the required bases for the government to formulate and implement a strategy to secure the stakeholders’ support (involvement) using the matrix of a general strategy to secure their support.

Keywords

Strategic Alliance, Stakeholder, Transparency, State-Owned Enterprise

Full Text: PDF

DOI: 10.22146/gamaijb.22291

References

Angle, H. L., and J. L. Perry. 1986. Dual commitment and labour-management relationship climates. Academy of Management Journal 29 (1): 31-50.
Bai, C-E., Q. Liu, J. Lu, F. M. Song, and J. Zhang, J. 2003. Corporate governance and market valuation in China. William Davidson Working Paper Number 564.
Basu, P. K. 1994. Demystifying privatisation in developing countries. International Journal of Public Sector Management 7: 44-55.
Boycko, M., A. Shleifer, and R. W. Vishny. 1996. A Theory of Privatisation. The Economic Journal 106: 309-319.
Clarke, G., R. Cull, and M. M. Shirley. 2005. Bank privatisation in developing countries: A summary of lessons and findings. Journal of Banking and Finance 29: 1905-1930.
Contractor, F. J., and W. Ra. 2000. Negotiating alliance contracts: strategy and behavioural effects if alternative compensation arrangements. International Business Review 9 (3): 271-299.
Cobianchi, T. T. 1994. Relationships among strategic alliance factors and strategic alliance success. UMI Dissertation Service.
Creed, W. E. D, and R. E. Miles. 1996. Trust in organisations: A conceptual framework linking organisational forms, managerial philosophies, and the opportunity costs of controls. In Das, T.K., and B. Teng (Ed. 1998), Between Trust and Control: Developing Confidence in Partner Cooperation in Alliances.
Das, T.K., and B. Teng. 1998. Between trust and control: Developing confidence in partner cooperation in alliances. Academy of Management Review 23 (3): 491-512.
Das, T. K., and Teng, B. 2000. Instabilities of strategic alliance: An internal tension perspective. Organisation Science 11: 77-101.
De Castro, J., and K. Uhlenbruck. 1997. Characteristics of privatisation: Evidence from developed, less-developed, and former communist countries. Journal of International Business Studies 28 (1): 123-143.
Dubois A., and L-E. Gadde. 2002. Systematic combining: An abductive approach to case research. Journal of Business Research 55: 553-560.
Duyster, G., G. Kok, and M. Vaandrager. 1999. Crafting successful strategic technology partnerships. R&D Management 29 (4): 343-351.
Eisenhardt, K. M. 1989. Building theories from case study research. Academy of Management Review 14 (4): 532-555.
Evan, W. E. 1966. The organisation-set: Toward a theory of inter-organisational relations. In Thompson, J. D., Approaches to Organisation Design. Pittsburgh, PA: University of Pittsburgh Press.
Forrest, J. 1992. Management aspects of strategic partnering. Journal of General Management 17 (4): 25-40.
Freeman, R. E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman Publishing Co.
Gummesson, E. 1991. Qualitative Methods in Management Research (Revised Edition). London: SAGE Publications Ltd.
Hart, P., and C. Saunders. 1997. Power and trust: Critical factors in the adoption and use of electronic data interchange. Organisation Science 8: 23-42.
Holtbrügge, D. 2004. Management of international strategic business cooperation: situational conditions, performance criteria, and success factors. Thunderbirds International Business Review 46 (3) (May-June): 255-274.
Jahansoozi, J. 2006. Organisation-stakeholder relationships: Exploring trust and transparency. Journal of Management Development 25 (10).
Kale, P., H. Singh, and H. Perlmutter. 2000. Learning and protection of proprietary assets in strategic alliances: building relational capital. Strategic Management Journal 21 (3): 217-237.
Kaplan, R. S., D. P. Norton, and B. Rugelsjoen. 2010. Managing alliances with the balanced scorecard. Harvard Business Review 88 (1/2): 114-120.
Kaufmann, D., and P. Siegelbaum. 1997. Privatisation and corruption in transition economies. Journal of International Affairs 50: 1-31.
Kerssens-van Drongelen, I. 2001. The iterative theory-building process: rationale, principle, and evaluation. Management Science Journal 39 (7): 503-512.
Kikeri, S., J. Nellis, and M. Shirley. 1994. Privatisation: Lessons from market economies. World Bank Observer 9 (2): 241-72.
Kikeri, S., and J. Nellis. 2002. Privatisation in competitive sectors: The record to date. World Bank Policy Research Working Paper No. 2860.
Kikeri, S., and J. Nellis. 2004. An assessment of privatisation. The World Bank Research Observer 19: 1.
Lehman, D. R., S. Gupta, and J. H. Steckel. 1998. Marketing Research. Boston: Addison-Wesley Educational Publishers Inc.
Lorange, P., and J. Roos. 1992. Strategic Alliances: Formation, Implementation, and Evolution. Massachusetts: Blackwell Publishers.
Malhotra, N. K. 2006. Marketing Research: An Applied Orientation. Prentice Hall 5th Edition.
Megginson, W. L., and J. M. Netter. 2000. From state to market: A survey on empirical studies on privatisation. Journal of Economic Literature (June).
Moore, J. 1992. British privatisation: taking capitalism to the people. Harvard Business Review, 70(1):115-24, January-February.
Perry, C. 1998. The process of a case study methodology for postgraduate research in marketing. European Journal of Marketing, 32(9/10): 785-802.
Polonsky, M. J. 1996. Stakeholder management and the stakeholder matrix: Potential strategic marketing tools. Journal of Market Focused Management 1: 209-229.
Ramamurti, R. 2000. A multilevel model of privatisation in emerging economies. The Academy of Management Review 25: 525-550.
Ramamurti, R. 2000. A multilevel model of privatisation in emerging economies. The Academy of Management Review 25: 525-550.

Refbacks

Exploring Stakeholder Support in an International Equity Placement Strategic Alliance

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.