Abstract
Background: Strategic alliances enable businesses to gain competitive advantage by providing access to the each other s resources which can be utilized to ensure the business profitability of the firms in the alliance. Telecommunication industry is dominated by large players, such as Mobile Network Operators. In contrary, comparatively small players, such as Mobile Virtual Network Operators, are struggling to sustain themselves in the business. Although a lot of literature is present on strategic alliances and partnerships between large and small firm, however, upon study, limited literature was found particularly focusing on how small firms could be empowered to form alliances with large players in the telecommunications industry. Goal: The aim of this study is to identify those drivers behind strategic alliance that can enhance the empowerment of small players and to investigate the business advantages of a strategic alliance for both large and small players in an alliance in telecommunication industry. Since, a successful alliance happens when there is a win-win situation for both parties in alliance; the business advantages of an alliance are important factors that drive the formation of an alliance. Method: The study followed a Qualitative approach of research using an embedded case study method. There was multiple unit of analysis as both telecom companies and a telecom regulatory body both were analyzed. Result & Analysis: A total of eight representatives were interviewed from Norwegian Telecom Companies and Norwegian communication authority. The analysis part showed the strength, weakness of small players and their common struggles against industry rivalry due to insufficient financial capability. Most of the small players see the regulatory authorities contributing to their sustainability in the market besides their internal resources. This section also discusses the preference of large players for forming business alliances with small players to get their services. Findings: An important finding of this research is that innovation and financial resource is important as an internal driver for a small player to be empowered to form an alliance with large players. A very important driver is regulations in telecom. Lastly, in a win-win alliance, all parties expect to have business advantage, particularly large players aim for profitability while small players aim for both sustainability and profitability.