Strategic alliances of Hong Kong based clothing manufacturing firms

Can strategic alliances combine or coordinate their members' resources in finance, marketing, production, and technology to enhance their competitiveness? Are strategic alliances more likely to be formed during recession time? Is the motive of forming strategic alliances are to diversify? Are the major characteristics for strategic alliances are limited to relationship and cooperation? This study intends to answer these questions and provide Hong Kong based clothing manufacturing firms more information on the essence of strategic alliances. Two hundred sets of questionnaire were administered to local clothing manufacturing firms and the response rate is 44%. Four hypotheses were set in this research study: H1: The motive for Hong Kong based clothing manufacturing firms to form strategic alliance is not to remain in the business. H2: The motive for Hong Kong based clothing manufacturing firms to form strategic alliances is not to increase competitive advantages. H3: Hong Kong based clothing manufacturing firms is not more likely to form strategic alliances during economic recession.H4: The major characteristics within strategic alliances are not relationship and cooperation. The results showed that all of the null hypotheses were rejected. 54% of local firms had formed strategic alliances. 32% said they planned to form strategic alliances in the near future. 14% indicated that they have no intention to from strategic alliances. The motives behind the formation of strategic alliances are to remain in the business, to increase competitive advantage, and to overcome economic recession.Institute of Textiles and ClothingRefereed conference pape