Title: Analysis of strategic alliance management – lessons from the failure of Korean and Japanese licensed games in China

Authors: Qun Ren, Philip Hardwick

Addresses: Business School, Bournemouth University, United Kingdom. ' Business School, Bournemouth University, United Kingdom

Abstract: The Chinese online game industry is a young knowledge-intensive service industry with huge potential. Since 2003, setting up strategic alliances with the Chinese online game operators has been chosen as the main mode by foreign game companies to enter China. With the rise of the Chinese online industry, the market shares of the foreign licensed games have been declining from their original dominant position. In this paper, instead of concerning the relationship between natural cultural difference and the foreign licensed game operation, the authors use Tung|s technical competence theory to explore factors that have caused decline in the market share of foreign licensed games in China. In the findings, the lack of in-depth knowledge of market demand, the lack of appropriate product supply, the lack of effective business strategy and management teams as well as the Chinese government|s local protection policies are classified as the main reasons for foreign games| market decline in China.

Keywords: national cultural differences; technical competence; market demand; localisation; customer demand; culture; strategic alliances; alliance management; Korea; Japan; online gaming; licensed games; China; product supply; business strategy; management teams; government protection; foreign games market.

DOI: 10.1504/IJCCM.2009.023596

International Journal of Chinese Culture and Management, 2009 Vol.2 No.1, pp.1 - 14

Available online: 02 Mar 2009

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