The Dynamic Mechanism Of Non-equity Strategic Alliance

Since 1980's, great changes have taken place in global economic situation because of the economical globalization, collectivization of region economic, enhancement of international division of labor and rapid development of technologies. The competitive environment that enterprises have to face shows the character of uncertainty. Under the strong competitive pressure, enterprises especially Multinational Companies have to adjust the competitive relationship among the companies from the strategic point of view. They have turned to collaborative competition from opposability competition. As one of the most important forms of collaborative competition and measures of strengthen the competitive advantage, Strategic Alliance has attracted the popular attention of economics field and management field.Strategic alliance is one of the middle organization forms between enterprises and markets. It is a sort of strategic collaborative behavior and equal partner relationship on the base of shared resources and risk, complementary of advantages and mutual trust. Non-equity Strategic Alliance (NESA), as one of the most important Strategic Alliance classifications, is loosely coupled and agile based on the restriction and coordination by contract. NESA shows the essential character of Strategic Alliance because its emphasis is put on the collaboration and privities of relative enterprises.Firstly, this paper systematically analyzes the connotation and extension meanings of NESA and its economic motives supported by the theories of New Institutional Economics and Strategy Management. Secondly, the research of the premise and the evaluating method of its application in enterprises are processed. And, it concludes the boundary of NESA through the comparison between Enterprise Integration and NESA. Thirdly, it puts forward a plan to solve the coordination problems between partners through the research of NESA's organization structure, partner's respective strategic goal, cultural background and information communication. Fourthly, to improve the application value of NESA, the issues of benefit distribution, organizational restriction and stability optimization under the dynamic environment are discussed. As the main part of this paper, several mathematical models for the dynamic mechanism of NESA are set up. On the base of the several mathematical models, the important relationship between the key factors and processes of NESA's construction, execution andstabilization is concluded. Moreover, the Pareto optimum vector of benefit distribution, which can impel the alliance system to operate more smoothly, is computed. And also a new notion of "Dynamic Relative Stability" and an approach of solving the problem of the optimum stability of NESA under the effective organizational restriction are proposed. Based on the researches mentioned above, the author expects to direct and help Chinese enterprises to establish NESA under the changing environment and improve their competitive advantages.