( the formal
difference between a joint venture and a strategic alliance is that a strategic
alliance is typically is non-equity cooperation, meaning that the partners do
not commit equity into or invest in the alliance. The joint venture can be either
a contractual non-equity joint venture or an equity joint venture. In a
contractual joint venture no joint enterprise with a separate personality is
formed. Two or more companies form a partnership to share the cost of
investment, the risks and the long-term profits. An equity joint venture
involves the creation of a new company in which foreign and local investors
share ownership and control. Thus according to these definitions strategic
alliances and non-equity joint ventures are more or less the same.
YelenaPestereva)