Announcing: Nithisathian, Kittichok. Somchai Rattanakomut and John Walsh, “Empirical Investigation of Partnership Selection Proficiency in Thai Fine Gold Jewellery Industry,” World Journal of Social Sciences, Vol.2, No.2 (March, 2012), pp.61-73, available at: http://www.wbiaus.org/6.%20Kittichok1.pdf.
Abstract: An alliance is a strategic instrument in the contemporary business world that provides several advantages, such as creating a competitive advantage; reducing costs etc. Although the growth in strategic alliances is quite high, the majority are reported as being unsuccessful. The literature indicates that the characteristics of partners and the way firms select strategic partners can foretell the success of the strategic alliance to a certain extent. This paper studies strategic partner selection based on the Thai fine gold jewelry industry perspective. The period of research was from May 2010 to May 2011 and a total of forty five interviews were conducted. The results show that, in order to be successful in a strategic alliance, firms cannot rely on trust, partner’s past performance, and face-based judgments. Instead, firms need to acquire as much information as possible before entering an alliance and constant monitoring to prevent any misconduct in the strategic alliance. In order to be selected by a partner, firms need to build up their reputation and create indispensability. In terms of negotiation, to avoid any problematic issues, the thick face and black heart approach is recommended. Field of research: Strategic alliance, Indispensability, Thick face and black heart, Fine gold jewelry industry