Market liberalization and international alliance formation: The Mexican paradigm

Market liberalization has emerged as a major phenomenon affecting global business today. Coincident with the spread of market liberalization, business alliances have become the dominant form for promoting international business. Current research and discussion of international business alliances-or strategic alliances-have centered on the Triad markets (the United States, Japan and Western Europe), yet international strategic alliances can play a special role in market liberalization in less developed countries (LDCs). The purpose of this paper is to examine international strategic alliances from the perspective of Mexican managers contending with the current market liberalization in their country. It focuses on motivations for alliance formation and alliance partner selection and the role of stakeholders In alliance formation. The study is designed to project patterns of alliance formation in the many other liberalizing economies throughout the developing world.