INTERNATIONAL STRATEGIC ALLIANCES IN IT- BUSINESS: A REGIONAL ASPECT

  • I.V. Kryvovyazyuk Lutsk National Technical University
Keywords: international strategic alliance (ISA), information and communication technologies (ІСТ), IT-business, regional aspect.

Abstract

At the present stage of international business development, the issues of mutually beneficial cooperation between companies, which is provided based on the distribution and coordination of general principles of management, benefits and costs, the creation of new value for companies, are becoming increasingly important.  Such cooperation between companies in the IT field is especially important, because it aims to maintain greater share of autonomy, achieve new goals, expand the customer base, improve the quality of provided services, allows receiving financial assistance, the effectiveness of which depends on the chosen types of organizational design of relationships of the international strategic alliances and ways of their management, helping to reduce pressure from competitors, reduce risks, improve the exchange of modern technologies.

Critical analysis of scientific publications of modern domestic and foreign scientists allowed to reveal the peculiarities of cooperation of ISA in the field of IT business, note the prospects of joining such alliances by Ukrainian companies, emphasize the importance of taking into account the role of ISA in developing competitive strategies of domestic enterprises in the IT sector, to determine the factors of ISA formation, their advantages and disadvantages. The importance and significance of the role of regional alliances, operational coordination of IT business in inter-operational relations, strategic IT opportunities, and peculiarities of management in global, regional and local production and sales chains of implementation of IT services are also determined.  

The indicators of IT business development during the spread of the COVID-19 pandemic are analysed and the distribution of the information and communication technologies market by regions of the world is determined, the key role of ISA companies from the USA, EU and China is indicated. Determined prospects for the development of this market for companies in the Middle East which will be achieved through government initiatives in the field of digital transformation and adoption by companies of revolutionary technologies such as artificial intelligence and the Internet of Things, development of a portfolio of ICT services for corporations, including programs to monetize investments in 5G network, cloud computing, cybersecurity, block chain, etc.  

The regional distribution of strategic alliances in the EU countries is revealed. The tendency of decentralization in the formation of the European market of strategic alliances in the period preceding the spread of the COVID-19 pandemic is revealed as well. It was found that for almost all studied countries the average values of the ESA number are much lower than the average values of the number of ISA. That is, companies in European countries are more focused on creating strategic alliances with companies of other regions of the world.

The importance of taking into account the system of factors motivating the creation and development of ISA in the IT field is indicated, in particular the adjacency of high-tech industries and sectors of business partners, taking into account the conditions of COVID-19 spread, the coherence of strategic goals of partners before and after COVID-19 spread, the interchangeability of methods and forms of work in the market depending on the conditions of COVID-19 spread, the speed of business diversification regarding the spread of the pandemic and introduced quarantine restrictions in partner countries, compliance of partners' contributions to the scale of business during the pandemic; strengthening operational integration as the strategic alliance develops.

Published
2021-11-29