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Title: Lifecycles, Operational Risks and Management of Enterprise Alliances
Source: International Conference on Engineering and Business Management 2012(Part 1 Enterprise Operation and Management(1)) (pp 209-213)
Author(s): Zhiquan Zhao, School of Economics and Management, Zhongyuan University of Technology, Zhengzhou, China, 450007
Abstract: The enterprise alliance herein is a loose-networked organization consisting of two or more parallel business bodies, having common interest, facing common risks, and allowing production factors flowing horizontally in double or multiple directions, and, is accompanied with the equality among parties, organizational dynamic, and mutual benefiting. Enterprise Alliances is a market-oriented organization and has its own lifecycle, with extending the firm’s life period theory to enterprise alliance domain, enterprise alliance also have to experience pregnancy, adolescence, adulthood and death (disintegration).However, default activities and opportunistic tendencies of the members within the alliance influence the existence and the performance improvement of the alliance. Therefore, it is necessary to strengthen system design and management in order to avoid risks, extend lifecycles and improve performances of enterprise alliances. The paper analyzed the management emphases and the main risks faced by enterprise alliances during different life stages and put forward corresponding risk management decisions.
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