By using the data set of 344 horizontal international strategic alliance announcements from 1989 to 1997. This examines the effects of horizontal international strategic alliances on abnormal returns of suppliers and corporate customers. Event-study methodology is applied to investigate announcement-related stock market revaluations. We find little evidence consistent with the relation between alliance firms’ size and main customers. However, we do find evidence consistent with the market power in term of customers. We also find that different types of horizontal strategic alliance have different effects on suppliers. Though, market power hypothesis is not supported in terms of suppliers, the results provide us a new view about market power.

By using the data set of 344 horizontal international strategic alliance announcements from 1989 to 1997. This examines the effects of horizontal international strategic alliances on abnormal returns of suppliers and corporate customers. Event-study methodology is applied to investigate announcement-related stock market revaluations. We find little evidence consistent with the relation between alliance firms’ size and main customers. However, we do find evidence consistent with the market power in term of customers. We also find that different types of horizontal strategic alliance have different effects on suppliers. Though, market power hypothesis is not supported in terms of suppliers, the results provide us a new view about market power.

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