Successful alliance partners tend to use several different structural tactics to meet this challenge. First, they isolate sensitive technologies from the venture. For example, GE modularized the production of high value-added engine-core components to protect its knowhow from Snecma. Similarly, Boeing retained control of overall design and assembly of key components in its alliances with Mitsubishi, Fuji, Kawasaki, and Aeritalia. Second, some companies centralize contact points between the joint venture and the parents. This is relatively easy in highly centralized[…]
