INFLUENTIAL CRITERIA TOWARDS PARTNER SELECTION FOR STRATEGIC ALLIANCES OF START-UPS IN THE BANDUNG CITY

• Main Author: Octavenia Sallao, Tanika
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/67046
• Institution: Institut Teknologi Bandung

Despite an already promising growth ecosystem, Indonesian start-ups have always struggled with limitations in capital and human resources. Forming an alliance is one of the compatible solutions to suffice the limited resources by utilizing external resources that are not available for one's party. Partner selection process is critical before forming a strategic alliance with the appropriate partner. Previous study of Wu, Shih, and Chan (2009) towards TFT-LCD industry, developed criteria for partner selection that includes characteristics of the partner, marketing knowledge capabilities, intangible assets, complementary capabilities, and degree of fitness. By incorporating literature studies relevant to the topic, this research goal is to attain knowledge of prominent partner selection criteria to increase likelihood in forming strategic alliances with start-ups located in Bandung. This study applies the quantitative method using 5-point Likert that is incorporated in a questionnaire distributed towards the top management personnel working at start-ups in Bandung. The data collected is measured using Principal Component Analysis to generate component loadings that will determine whether listed items of questions align with the categorization of partner selection criteria based on the study of Wu, Shih, and Chan (2009). From the respondents gathered, the researcher analyzed that the five criteria constructed by the study of Wu, Shih, and Chan (2009) is relevantly accepted among start-ups in Bandung in general means. However in the cases among start-ups located in Bandung, further consideration should be made where the newly constructed main criteria of partner selection should be followed to match the prevailing context. Thus, it is suggested to consider the partner selection criteria consisting of business possession’s decency, marketing capabilities, capabilities to support compatibility, recognition, and degree of fitness to increase the chances in forming strategic alliances with start-ups located in Bandung. Keywords: Start-ups, Strategic Alliances, Partner Selection Criteria