Cooperation among the Competitors in International Cargo Transportation Sector: Key Factors to Success
Cooperation among the Competitors in International Cargo Transportation Sector: Key Factors to Success

Summary/Abstract: The purpose of this paper is to explore how coopera-tion with competing companies can be achieved success-fully. Although international cargo transport sector is chosen, guidelines should be applicable to other indus-tries as well, because they are based on psychological factors, which are universal. The paper is scientifically novel because it: (1) focuses on horizontal alliances; (2) looks at international transport industry sector; (3) evaluates specifics of developing (Lithuanian) market; (4) looks at multi-company cooperation. The costs and management challenges in building successful cooperative projects are often much higher than anticipated. For example Bergquist et al. (1995), studied 75 diverse alliances in the United States, found that about 1 out of 3 had either failed outright, had to be radically restructured, or survived only because the part-ners could not extricate themselves. Research confirms that difficulties in creating suc-cessful alliances in part can be attributed to differences between three strategic viewpoints that dominate world of business strategy: (1) Competitive paradigm, whereby companies gain competitive advantages in one of two ways – (a) by achieving advantageous position in an indus-try; (b) by developing and using core competences to offer better products and services (Prahalad, Hammel 1990; Wernerfelt, 1984; Porter, 1985). (2) Cooperative paradigm, whereby companies exist in a network of interdependent relationships fu-eled by desire of companies to gain collaborative advantages through strategic collaboration (Contractor, Lorange 1998; Hamel, Doz, Praha-lad 1989; Kanter, 1994; Nielsen, 1988). (3) Syncretic paradigm, whereby competitive and cooperative strategies should be pursued simul-taneously to achieve above average performance (Lado, Boyd, Hanlon, 1997). Managers subscribing to competitive paradigm, fail to notice benefits provided by cooperative or syncretic paradigms. Such view prevents them from cooperating altogether.

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