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Week Six Discussion Board

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Q Discussion Board Question: What are the three governing mechanisms for strategic alliances? List the benefits and downside for each of the mechanisms? Your response should be at least 250 words long, with at least two references (not Wikipedia) using your textbook and online sources and should be a balance between properly cited references in APA format and your thoughts. I am expecting you provide an analysis of the question. Not just copying and pasting responses. You need to respond to at least two classmates. It is recommended you post your initial response to the discussion board by Wednesday. Your responses to your classmates should be at least 150 words.

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The first governing mechanism is Equity Strategic Alliance in which there is convenience obtained by every organization entering as well as exiting a target market (Li & Reuer, 2021). The present operations of an organization can be improved by using this type of strategic alliance. However, there has to be high level of investment made by an organization while entering into an Equity Strategic Alliance (Rothaermel, 2021). There can be absence of flexibility because of not always being successful in obtaining profits from such an alliance (Li & Reuer, 2021).