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The article is based on research carried out in 1995 on a sample of UK‐based retailers that were involved in international joint ventures and international buying alliances. The research identified the differences and comparison between these forms of alliances in terms of the competencies and skills that were being transferred between members of the alliances. The findings suggest that joint venture relationships appear to be closer and of a more strategic nature in achieving competitive advantage than buying alliances. Joint ventures appear to make a greater contribution to product strategy and learning than do alliances. However, little difference was found between the two alliance forms in terms of skill transfers.

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