Showing papers on "Strategic alliance published in 1998"
TL;DR: In this article, the authors introduce a social network perspective to the study of strategic alliances and identify five key issues for the formation of alliances, the choice of governance structure, the dynamic evolution of alliances and the performance of alliances.
Abstract: This paper introduces a social network perspective to the study of strategic alliances. It extends prior research, which has primarily considered alliances as dyadic exchanges and paid less attention to the fact that key precursors, processes, and outcomes associated with alliances can be defined and shaped in important ways by the social networks within which most firms are embedded. It identifies five key issues for the study of alliances: (1) the formation of alliances, (2) the choice of governance structure, (3) the dynamic evolution of alliances, (4) the performance of alliances, and (5) the performance consequences for firms entering alliances. For each of these issues, this paper outlines some of the current research and debates at the firm and dyad level and then discusses some of the new and important insights that result from introducing a network perspective. It highlights current network research on alliances and suggests an agenda for future research. © 1998 John Wiley & Sons, Ltd.
4,694 citations
TL;DR: In this article, the authors developed a framework for understanding the dilemma through consideration of trade-offs between how collective learning is developed in alliances and how the joint learning outcomes are divided among the partners.
Abstract: Alliances are volatile key components of many corporations' competitive strategies. They offer fast a nd flexible means of achieving market access, scale economies, and competence development. However, strategic alliances can encounter difficulties that often lead to disappointing performance. The authors suggest that the way partners manage the collective learning process plays a central role in the success and failure of strategic alliances. Present understanding of interorganizational learning primarily focuses on how the individual organization can be a "good partner" or try to win the internal "race to learn" among the partners. The interorganizational learning dilemma is that (1) being a good partner invites exploitation by partners attempting to maximize their individual appropriation of the joint learning, and (2) such opportunistic learning strategies undercut the collective knowledge development in the strategic alliance. The authors develop a framework for understanding the dilemma through consideration of trade-offs between how collective learning is developed in alliances and how the joint learning outcomes are divided among the partners. They create a typology of five different learning strategies based on how receptive as well as how transparent an organization is in relation to its partners. The strategies are: collaboration (highly receptive and highly transparent); competition (highly receptive and nontransparent); compromise (moderately receptive and transparent); accommodation (nonreceptive and highly transparent); and avoidance (neither receptive nor transparent). Interorganizational learning outcomes are proposed to be the interactive results of the respective partners' type of adopted learning strategy. By synthesizing strategic alliance, organizational learning, collective action, and game theories, the framework contributes to understanding the variety in alliance development, performance, and longevity. Interorganizational learning is likely to be hindered by lack of either motivation or ability to absorb and communicate knowledge between the partner organizations. The dynamics of power, opportunism, suspicion, and asymmetric learning strategies can constitute processual barriers to collective knowledge development. In contrast, prior related interaction between the partners, high learning stakes, trust, and long-term orientation are likely to empower the collective learning process. Comparison of previous case studies and surveys of interorganizational learning provides partial empirical support for the proposed framework. The comparison also indicates several omissions in previous research, such as failure to consider either how receptive or how transparent the partners are, the interaction between their learning strategies, and their dynamic processes over time. Because these omissions are due partly to the methodological limitations of traditional case studies and crosssectional surveys, the authors suggest a bridging case survey design for a more comprehensive test of their interactive, dynamic, and situational framework.
1,121 citations
TL;DR: In this paper, the authors developed a mapping of the firms' positions in an industry and applied this model in a longitudinal study of the formation of alliances between organizations, showing that firms in crowded positions and those with high prestige form alliances at the highest rates.
Abstract: I wish to acknowledge many helpful suggestions from Biil Barnett, Ron Burt, Glenn Carroll, Karel Cool, Mike Hannan, Jeff Pfeffer, Joel Podolny, and Jesper Sorensen, Comments from Mark Mizruchi and three anonymous reviewers greatiy improved this paper. Financial support for this research was provided by the FMC Scholar progfam at the University of Chicago, Graduate School of Business and from the State Farm Doctoral Dissertation Fellowship. The paper develops a net\/vork-based mapping of the technoiogicai positions of the firms in an industry and applies this model in a longitudinal study of the formation of alliances between organizations. In the analysis, the positions of high-technology firms in their competitive environment are stratified on two dimensions: crowding and prestige. Organizations in crowded positions are those that participate in technological segments in which many firms actively Innovate, and prestigious firms are those with a track record of developing seminal inventions. The study's principal empirical findings are that firms in crowded positions and those with high prestige form alliances at the highest rates. The statistical analyses, performed on a sample of semiconductor firms during a six-year period, demonstrate that crowding and prestige predict alliance formations at the firm level (which organizations establish the greatest number of alliances) and at the dyad level (which particular pairs of firms choose to collaborate).*
1,003 citations
TL;DR: In this article, the authors developed a framework to understand how managers can shape networks and develop a framework which explains how industry networks evolve over time and in response to specific events, and validate their hypotheses with longitudinal data on the strategic alliance network in the global steel industry.
Abstract: Interfirm relationship networks are strategic resources that can potentially be shaped by managerial action. As a first step towards understanding how managers can shape networks, we develop a framework which explains how industry networks evolve over time and in response to specific events. Our main thesis is that industry events may be either structure-reinforcing or structure-loosening, and that their potential structural impact may be predicted in advance. We validate our hypotheses with longitudinal data on the strategic alliance network in the global steel industry.
504 citations
TL;DR: In this paper, the authors identify four types of critical resources that the partners bring to an alliance: financial, technological, physical, and managerial resource, and suggest two basic types of risk in strategic alliances: relational risk and performance risk.
414 citations
TL;DR: In this paper, the authors examine organizational learning and knowledge acquisition in the strategic alliance context and consider the question of why some firms are more effective than others at leveraging and exploiting alliance knowledge.
299 citations
TL;DR: It is concluded that, while many IT outsourcing contracts followed rationalization, cost‐cutting and disappointing results from in‐house IT provision, short‐termism and current uncertainties over market, business and political conditions pose problems for many organizations in deciding future outsourcing arrangements.
Abstract: The main thrust of the article is to distinguish between four types of IT sourcing decision: total outsourcing; multiple-supplier sourcing; joint venture/strategic alliance sourcing; and insourcing. To illustrate each type, detailed case histories are used that analyse the reasons why specific IT sourcing decisions were adopted. Here, we consider total outsourcing at the London Stock Exchange; multiple-supplier sourcing at ICI plc; joint venture project sourcing at CRESTCo Ltd; and insourcing at the Royal Bank of Scotland. The trend towards outsourcing is increasing in all industrial and commercial sectors. However, client organizations need to become more aware of some of the pitfalls, particularly in respect of large-scale outsourcing deals to single or multiple suppliers. This is because the move to IT outsourcing engenders the need to develop new capabilities and skills to manage complex commercial contracts. We therefore conclude that, while many IT outsourcing contracts followed rationalization, cost-cutting and disappointing results from in-house IT provision, short-termism and current uncertainties over market, business and political conditions pose problems for many organizations in deciding future outsourcing arrangements.
214 citations
TL;DR: In this article, the authors make an exploratory attempt to explain strategic alliance formation from the resource-based approach, which has so far been neglected by researchers in this area, and discuss five major motives for strategic alliance, namely creation of rents, expansion of resources usage, diversification of resource usage, imitation of resources and disposal of resources.
152 citations
TL;DR: In this paper, the authors examine the underlying rationale behind successful intra-and interfirm relationships and conclude that customer relationship management based on social exchange and equity significantly assists the firm in developing collaborative, cooperative, and profitable long-term relationships.
96 citations
TL;DR: In this paper, the authors analyzed the effects of airline alliances on partner airlines' outputs by comparing traffic changes on alliance routes with those on non-alliance routes and found that most of the partners have greater traffic increases on their alliance routes than those on their non-aligned routes, supporting a hypothesis derived from the theoretical model.
Abstract: This paper analyzes the effects of airline alliances on partner airlines’ outputs by comparing traffic changes on alliance routes with those on non-alliance routes. A theoretical model of an airline alliance is developed, and an empirical analysis is then conducted using panel data from four major alliances in North Atlantic markets during the 1992–1994 period. It is found that most of the partners have greater traffic increases on their alliance routes than those on their non-alliance routes, supporting a hypothesis derived from the theoretical model.
94 citations
Book•
01 Jan 1998
TL;DR: The role of the International Corporations in Cross-Border Knowledge Transfer in the Semiconductor Industry (P. Lau, et al. as discussed by the authors ) and the role of international corporations in cross-border knowledge transfer in the semiconductor industry is discussed.
Abstract: The New Frontier (M. Hitt, et al.). INTERCONNECTED WORLD: THE GLOBAL ENVIRONMENT, UNCERTAINLY, AND KNOWLEDGE DEVELOPMENT. Competitive Policy Shocks and Strategic Management (P. Ghemawat, et al.). Firmsa Strategies and National Institutional Environments (J. Bensedrine & H. Kobayashi). Perceiving Environmental Change and Strategic Uncertainty in the Central European Banking Industry (W. Hegarty & L. Tihanyi). Decision Processes and Uncertainty: Corporate Strategy in China (S. Fowler & M. Lord). Strategic Orientations of Chief Executives in State--Owned Enterprises in Transition (C. Lau). The Role of the International Corporations in Cross--Border Knowledge Transfer in the Semiconductor Industry (P. Almeida, et al.). Strategic Interaction, Knowledge Sourcing and Knowledge Creation in Foreign Environments--An Analysis of Foreign Direct Investment in R&D by Multinational Companies (W. Kuemmerle). Controlling Unique Knowledge Development as the Basis of Sustained High Performance (W. Bogner & P. Bansal). INTERCONNECTED FIRMS: THE ROLE OF COOPERATION, TRUST AND GOVERNANCE. Goverance of Interorganizational Partnerships: A Comparison of US, European and Japanese Alliances in the Pharmaceutical Industry (P. Bierly & E. Kessler). Strategic Alliance Formation and Market Evaluation: Effects of Parent Firma s Governance Structure (R. Hoskisson, et al.). Corporate Boardsa Line of Reasoning--Comparison Between Corporate Governance in Poland and Sweden (J. Dzialo, et al.). Successful Technology--Based Strategic Alliances: An Entrepreneurial Perspective (G. Meyer & S. Alvarez). Strategic Alliances and Blocks: Cooperative Behavior as a Driving Force for Their Evolution (A. Arino & C. Garcia--Pont). The Virtual Organization: A Special Mode of Strong Interorganizational Cooperation (J. van Aken, et al.). How Firms Can Benefit from Collaborating within R&D Consortia (C. Mothe & B. Quelin). Acquiring Partnersa Capabilities: Outcomes of Scale and Link Alliances Between Competitors (P. Dussauge, et al.). Relative Absorptive Capacity, Trust, and Interorganizational Learning in International Joint Ventures (P. Lane, et al.). Understanding Trust to Build Strong Relationships in Organizations (C. Portales, et al.). Value Appropriation in an Interconnected World (C. Park). Index.
TL;DR: In this paper, the effect of network affiliation on a member firm's decision to enter a foreign market and international strategic alliance formation was examined, and it was shown that when affiliate firms are dependent on the core firm, they prefer to form symbiotic strategic alliances.
TL;DR: In this paper, case studies of three players in the multimedia arena focused on instances and patterns of technological learning are compared and contrasted, highlighting the success and failure to learn from customer, competitor, and supplier feedback and to integrate lessons learned in shaping entrepreneurial decision making and marketing strategy.
TL;DR: In this paper, a conceptual framework delineates both the main advantages and challenges of design alliances and links this with the resource-based perspective of strategic management, and three company cases are compared to explore how innovation and advances in industrial design may occur through a design alliance.
Abstract: Trends indicate that design expertise is increasingly outsourced by companies. A fresh and creative input by external designers can be highly valuable for innovation and business success. Surprisingly, however, few firms have fully exploited the business potential of design investment. One approach to build up and leverage design expertise would be to establish a strategic alliance with an external design resource to supply a constant flow of fresh ideas and insights to enhance product development and innovation. A conceptual framework delineates both the main advantages and challenges of design alliances and links this with the resource-based perspective of strategic management. Three company cases are compared to explore how innovation and advances in industrial design may occur through a design alliance.
TL;DR: In this article, the notion of bounded rationality is used to consider strategic alliances with a view of providing an insight into the presumptive reasons for action in choosing strategic alliance partners, concluding that relationships have a pre-eminent place in strategic alliances and that relationships are poised between ends and means to ends.
Abstract: The notion of bounded rationality is used to consider strategic alliances with a view of providing an insight into the presumptive reasons for action in choosing strategic alliance partners. The research methodology used is one of a realist approach (after Stiles, 1995) and a discerning of patterns (after Tesch, 1990) in thematic interviews. The discussion examines the issue and concludes that bankers, when entering into strategic alliances, do not consider every option. That is they use filters to reduce the potential choice; thus the range of possible alliance partners is restricted in many ways, some of these being unconsciously employed. Furthermore, it is clear that, while bankers consider margins, ratios and percentages, relationships have a pre‐eminent place in strategic alliances and that relationships are poised between ends and means to ends.
01 Jan 1998
TL;DR: In this paper, the authors investigated how a small hotel firm can achieve effective representation within electronic distribution systems, and access essential marketing skills, providing it with the potential to transform itself from a "corner shop" operating in a mainly domestic market, to participation in an "electronic shopping mall" with global reach.
Abstract: The article investigates how a small hotel firm can achieve effective representation within electronic distribution systems, and access essential marketing skills, providing it with the potential to transform itself from a ‘corner shop' operating in a mainly domestic market, to participation in an ‘electronic shopping mall' with global reach It explores the range, nature and characteristics of current and emerging technologies that may play a major role in the distribution of the small hotel product, and their impact and implications The strategic alliance form of organisation, in terms of membership of a marketing consortium, as one strategy of effectively addressing the technologies and market challenges is investigated Finally, the findings are tested relative to electronic distribution systems and strategic alliances within a major hotel marketing consortium Copyright © 1998 John Wiley & Sons, Ltd
11 Oct 1998
TL;DR: In this article, the authors explored the common characteristics and differences among the business strategies adopted by Taiwan's IC makers which is the fourth largest country in the world, including vertical disintegration, global strategic alliance, vertical alliance within the IC industry, flexible fund allocation and IP (intellectual property) rights awareness.
Abstract: This study explores the common characteristics and differences among the business strategies adopted by Taiwan's IC makers which is the fourth largest country in the world. The common strategies shared by Taiwan IC makers include vertical disintegration, global strategic alliance, vertical alliance within the IC industry, flexible fund allocation and IP (intellectual property) rights awareness. Despite the global downturn for IC industry in 1996 and 1997, the IC industry in Taiwan continued to grow rapidly with its outstanding performance in profitability and production capability. This research intends to propose a few recommendations to Taiwan IC makers and related parties with regard to the direction of their business strategies.
TL;DR: In this paper, the authors show that US firms without foreign affiliations use fewer modern manufacturing technologies than US firms with Japanese strategic alliance partners, and that Japanese companies with strategic alliances with US firms believe that manufacturing cycle times for product introduction are more efficient.
TL;DR: Le partenariat entre l'OCLC and le reseau regional des bibliotheques americaines reste solide malgre quelques tourmentes.
Abstract: Le partenariat entre l'OCLC et le reseau regional des bibliotheques americaines reste solide malgre quelques tourmentes
TL;DR: In this article, the authors propose a tripartite model in which the academic institution, the business institution, and the students are equal partners in the learning process, using cartography as a metaphor for this model.
Abstract: As greater numbers of universities and colleges enter the distance learning arena, strategic alliances between academic institutions and private sector businesses are increasing. Various models of academic/business alliances that emphasize the strength each partner brings to the collaboration have been discussed in the literature. This article proposes an alternative to these bipartite models: a tripartite model in which the academic institution, the business institution, and the students are equal partners in the learning process. Using cartography as a metaphor for this model, the strategic alliance between Marygrove College and Canter and Associates to provide a comprehensive distance learning master's degree program is discussed. The article describes the challenges this alliance has faced and offers prescriptions for continued success and future growth.
01 Jan 1998
TL;DR: The signing of the Israeli-Jordanian peace treaty in October 1994 made public one of the most known secrets in Middle Eastern politics: the strong bond between Israel and Jordan as discussed by the authors, which began in earnest back in the summer of 1960 as top level negotiations between military officers in the wake of a major Israeli intelligence failure in early 1960 and the assassination of the Jordanian Prime Minister in August 1960.
Abstract: The signing ceremony of the Israeli-Jordanian peace treaty in October 1994 made public one of the most known secrets in Middle Eastern politics: the strong bond between Israel and Jordan. It began in earnest back in the summer of 1960 as top level negotiations between military officers in the wake of a major Israeli intelligence failure in early 1960 and the assassination of the Jordanian Prime Minister in August 1960. In both cases the United Arab Republic (a union of Egypt and Syria, 1958-1961) was the clear winner. The Israeli-Jordanian channel resulting from the common threat developed into a king-prime ministers direct, secret and regular forum, which survived two wars and numerous political challenges. This history of about forty years between two public enemies, and yet two partners in a major regional strategic alliance, has been the result of a powerful sense of common aims, present interests and the realization that any future threat to any of them might in turn change the fate of the other. Thus, in assessing the components of this association one should strive to examine the national interests of the two partners bringing them together, the sphere of mutual interests, and finally, how these common interests came out to play a role in a series of regional crises. The British mandatory authorities decreed the indivisible triangle of Israel, the Hashemite kingdom of Jordan, and the Palestinians, as early as 1920. Since the day the British decided to partition the mandated territory defined as Palestine, into two entities, Jewish and Hashemite, they in effect created the basis for cooperation and common interests between two players counting on the British for their existence, against anti-British Arab nationalism. This early historic episode has been the basis of relations discussed in this study. Israel and the Hashemite kingdom of Jordan have enjoyed many years of fruitful cooperation. Even before the establishment of the Jewish state in 1948 and the declaration of Jordanian independence in 1946, the two leaderships aimed at coordinating their policies in an attempt to minimize the mutual risk in this volatile region. Even the break in direct high level contacts between the two countries between the signing of the 1950 non-aggression pact and the resumption of direct negotiations in 1960 did not signal a major change in the basic mutual interests.
TL;DR: According to a survey of 455 CEOs, the most important factor in designing a strategic alliance is the selection of the right partner (chosen by 75% of the CEOs), which remains a vital ingredient of successful alliances as discussed by the authors.
Abstract: The rapid emergence of strategic collaborations is evident everywhere. A look at the top companies around the world illustrates the increasing importance of the collaborative mind-set. Companies are expanding and deepening existing relationships and entering into new, more entrepreneurial alliances. Choosing the right partner remains a vital ingredient of successful alliances. No legal document can provide a framework for success without trust and understanding between the partners. According to a survey of 455 CEOs, the most important factor in designing a strategic alliance is the selection of the right partner (chosen by 75% of the CEOs). This paper should help the reader with this process and offers opinions, experiences, structures and evidence in pursuit of a solution to this issue.
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TL;DR: In this paper, the authors study the global market trend following its dynamic, customer behavior, strategic alliances, product life cycle, geography, and information and Communications Technology (ICT) and propose the Concurrent Enterprise approach.
Abstract: This chapter studies some aspects of the environment in which enterprises are evolving today and will evolve more and more in the near future. First, this environment is characterized by the global market trend. We study the global market trend following its dynamic, customer behavior, strategic alliances, product life cycle, geography, and information and Communications Technology (ICT). The global market is related to new paradigms of productive systems and in particular to the general framework characterized by what we call the transition from the information age’ to knowledge age. All these elements are linked to the telematics networks, which have a strong impact on business and commerce. Some people also call this period electronic commerce era. In this era, ICT become an essential component of economic and social systems. Thus all countries, organizations, and institutions, without exception, are affected by this development. As we know, ICT is a very wide field, and we propose here to focus on its impact on the creation and recreation of the new paradigm. This is the context in which we propose to develop the Concurrent Enterprise approach.
TL;DR: In this paper, the authors present a case study in how one company, Montana Wines of New Zealand, formed an alliance with Seagrams Chateau in the US.
Abstract: The US wine market is one of the most heavily regulated in the world with government regulation requiring exporters to go through a three tier distribution system. Coupled with geographic fragmentation, high transportation costs, and a significant degree of uncertainty, this represents a significant barrier to entry for small producers. As the wine market becomes more and more competitive, the ability to enter the world's second wealthiest wine market will be critical to continued market success. One way of circumventing market entry barriers and complying with government regulation is the formation of a strategic alliance with a home country distributor. This paper presents a case study in how one company, Montana Wines of New Zealand, formed an alliance with Seagrams Chateau in the US. The secret to success is to find the right fit between the philosophies and culture of each partner.
01 Jan 1998
TL;DR: In this article, the influence of environmental factors on the structures and processes of an organization will be more complex in the case of an international joint venture, with the relative influences of parent organization environments and the local environment open to empirical investigation to identify the nature and extent of any national business systems influence.
Abstract: International joint ventures are becoming increasingly popular as a form of strategic alliance, or cooperative strategy, but their failure rate is widely recognized as being high (Killing, 1982; Kogut, 1988). This form of cooperative strategy involves the interaction of organization systems that bring with them their own cultures, organization and management practices (Shenkar and Zeira, 1987). The influence of environmental factors on the structures and processes of an organization will be more complex in the case of an international joint venture, with the relative influences of parent organization environments and the local environment open to empirical investigation to identify the nature and extent of any national business systems influence (Whitley, 1992, 1994), ‘societal effect’ on the joint venture’s structures and processes (Maurice, Sorge and Warner, 1980; Sorge and Maurice, 1993) or other potential pressures for or against organizational isomorphism (DiMaggio and Powell, 1983; Orru, Biggart and Hamilton, 1991).
Journal Article•
TL;DR: In this paper, the aim of strategic management over production is to ask for special strategies in the scope of technology, product and market, which should provide for different priority for every enterprise partner in strategic alliance and its development on the global market.
Abstract: Strategic management business activity is the basis of every enterprise concerning involvement in international business. It is that condition that is necessary for the enterprise in order to lead in techniques, technology and production, marketing activities and entire business organization. Business internationalization on the global market, the aim that every enterprise strives for due to very broad economic horizon of management, may be realized only trough strategic business alliances. It is by market and the other limits leveling, as well as by use of flexible forms when cooperation between enterprise is concerned, together with management and marketing behavior of the enterprise, that use of adequate business strategies is provided for. That is why strategic management over production is to ask for special strategies in the scope of technology, product and market, which should provide for different priority for every enterprise partner in strategic alliance and its development on the global market, and that is the paper to be dealt with.
01 Jan 1998
TL;DR: In this article, the authors look at Canadian companies' views and responses to the Single European Market (SEM) initiative and show that, unlike national governments, which tend to view trade and investment issues in a somewhat parochial manner, multinational companies formulate their foreign market-servicing strategies on a broader scale, using cross-border exporting, strategic alliances (joint ventures etc.) and 1 overseas investment to reduce costs and enhance their marketing effectiveness.
Abstract: Historically, Europe and North America have forged strong trade and investment linkages. With the increasing ‘regionalisation’ of these areas, ensuing from the Single European Act 1986 (the so-called ‘1992’ initiative) and the establishment of the North American Free Trade Agreement (1989), the future of these transatlantic flows has been called into question. The dominance of regional concerns and issues in both governmental and corporate decisionmaking has raised the spectre of ‘inwardness’, protectionism and the sidelining of GATT. This article looks at Canadian companies’ views and responses to the Single European Market initiative. Unlike national governments, which tend to view trade and investment issues in a somewhat parochial manner, multinational companies (MNCs) formulate their foreign market-servicing strategies on a broader scale, using cross-border exporting, strategic alliances (joint ventures etc.) and1 overseas investment to reduce costs and enhance their marketing effectiveness. From their perspective, the formation of regional blocs may cause some temporary ‘inconveniences’ (the need to adjust to revised product specifications, technical standards, environmental protection measures and overt discrimination against ‘outsiders’ in the form, for example, of local content rules), but they also create greater opportunities for business expansion through their trade-creation effects. Moreover, the flexibility accorded to the multinational company through its ability to select a market-servicing mode most appropriate to the new circumstances can be used to minimise or remove strategic disadvantages (for example, in the face of discrimination against imports, MNCs may replace exporting by investing in a local manufacturing plant).
01 Jan 1998
TL;DR: In this article, the authors identify the importance of obtaining knowledge about the five major forces in industry analysis, as well as the role of strategic alliances in business strategies of the Mexican industry.
Abstract: This case study provides the basis for identifying the importance of obtaining knowledge about the five major forces in industry analysis, as well as the role of strategic alliances in business strategies of the Mexican industry. The Grupo Columbia is a Mexican organization whose major business activity is related to the health care sector. This organization, facing a new global environment, identified an important area for improvement in information management within its industry, and established a strategy towards its competitive position based on this approach. In order to implement the process, Grupo Columbia has selected information systems as the most suitable instrument to achieve its strategy and to create a profitable business unit called ColSis—seeking to encourage a culture of information technology in the health care sector.