Karagiannidis, Vanaja (2008) Co operative satisfaction factors for effective strategic alliances in the Australian telecommunications industry. Other Degree thesis, Victoria University.

Abstract

The telecommunications industry is critically important to Australia’s economic future. For this reason it was chosen as the subject of this thesis. This industry has progressed through a number of stages. From 1975 to 1991 it was a monopolistic public utility. During the nineties it became a duopoly (1991-97) before becoming an oligopolistic industry dominated by few major and powerful competitors. By the early part of the twenty first century the industry had rapidly expanded and developed into a more competitive market. Many transactions and alliances developed between the large dominant market leaders and smaller firms where they co-operated to achieve a common purpose. Some alliances were intended to facilitate co-operations between members of a value chain such as between suppliers of raw materials or components, suppliers and end users. Others were used to share tacit knowledge or expertise. Previous research suggested that, more so than other forms of relationships, alliances depend on social factors for their continuing success. The purpose of this study was to analyse the relationship between cooperative satisfaction factors (effective communication, commitment and trust, workable power and control, compatibility, cultural respect, and perception that alliance is worthwhile) and alliance effectiveness in the Australian telecommunications industries. This research used the triangulation approach. One method of data collection was a survey, the other was interviews. A survey was used to obtain quantitative data from a sample of 120 telecommunication companies. A response rate of 52.5% was achieved. A structured interview schedule was also used to collect qualitative data, which formed the basis of three companies case studies. The objectives of this research were: 1 To clarify the meaning and import of the word ‘alliance’ in the telecommunications industry. 2 To determine the nature of the relationship between cooperative factors and effectiveness of an alliance success in Australian telecommunications industries. 3 To determine the nature of the relationship between cooperative factors and effectiveness of alliance sustainability. 4 To ascertain the effect of organisational size on the relationship between cooperative factors and effectiveness of an alliance. The empirical findings confirmed that the term ‘alliance’ was used to describe a variety of co-operative arrangements that included contractual or non-contractual agreements, vendor arrangements, major tenders, major networks and cell/cluster groups. The quantitative research findings supported the proposition that effective communication is positively related to successful alliance effectiveness. Effective communication followed by commitment and trust were significant predictors of effectiveness. Size has an effect on the power and control factor in a relationship. This finding was supported by qualitative findings in which managers perceived size to matter in an alliance. On the other hand, a powerful partner could exert undue pressure on a relationship on the other; small creative, innovative and fragmented companies need relationships with big, strong and successful telecommunications firms that have established infrastructure foundations in the market. Further, the survey results suggested that respect had a positive influence on the sustainability of relationships. However, the qualitative results showed that other circumstances that influenced respect are often unpredictable.

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