Partnership and competition: The strategic alliance between Schneider et Cie and the Škoda Works during the interwar period

Abstract

Strategic alliances play an important role in business. This article analyses the interwar relationship between two major European arms manufacturing enterprises – the Czechoslovak Škoda Works and its post First World War majority shareholder the French Schneider et Cie – from the Czechoslovak viewpoint, based chiefly on the extensive research of unpublished sources. This study illustrates the development of mutual relations using the example of exports of artillery material under the so-called Artillery Convention, which divided export territories between the two companies and was valid for most of the monitored period. Though relations between the companies were initially determined by the proprietary relationship, they gradually stabilised, and these functioning relations can be considered an example of a successful joint venture between the enterprises. Schneider’s involvement in Škoda was positive for Škoda and Czechoslovakia because it also contributed to Škoda’s attainment of a strong position in the international arms trade.