Strategic Alliances in the Hospitality Industry
Strategic alliances have been increasingly used by firms over the past three decades as a key source of competitive advantage (Chathoth and Olsen, 2003; Hagedoorn, 1996). Cooperative strategies have grown in importance as firms expand and innovate (Insch and Steensma, 2006). Firms have used the networking strategy to sustain their competitiveness and address the challenges they confront in their business environment. In order to address the business risks associated with investments, firms need to identify appropriate strategies to manage these risks and ensure that the strategies they implement result in long-term returns. This is even more the case in an international setting when the risk exposure of firms is higher. This is why alliances with international firms provide a basis to mitigate such risks.
Handbook of Hospitality Strategic Management