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27 Cards in this Set
- Front
- Back
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Voluntary agreements between firms involving excfhange, sharing, or co-developing of products, technologies, or services.
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Strategic alliances
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______ of alliances and networks reportedly fail.
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30-70%
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Strategic alliances formed by multiple firms to compete against other such groups and against traditional single firms
Also known as constellations |
Strategic networks
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Strategic alliances and networks are cooperative interfirm relationships
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True
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A Comprehensive Model of Strategic Alliances and Networks
Industry-based considerations? |
-Collaboration among rivals (horizaontal alliances)
-Entry barriers scaled by alliances -Upstream/downstream vertical alliances with suppliers/buyers -Alliances and networks to provide substitute products/services |
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A Comprehensive Model of Strategic Alliances and Networks
Resource-based considerations? |
-Value-added must outweigh costs
-Rarity of relational capabilites and desirable partners -Imitability of firm-specific and relationship-specific capabilities -Organization of alliance activities at the firm and relationship levels |
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A Comprehensive Model of Strategic Alliances and Networks
Institutional-based considerations? |
-Formal regulatory pillar (collusion concerns and entry requirements)
-Informal normative pillar (the social pressures to find partners) -Informal cognitive pillar (the internalized beliefs in the value of collaboration) |
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Investment instrument that enables its holder, who has paid for a small fraction of an asset's value, the right (but not the obligation) to increase his/her investment to eventually acquire the asset.
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Option
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Option investment in real operations as opposed to financial capital.
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Real Option
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The difficulty in locating partners with certain desirable attributes.
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Partner rarity
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Capabilities to successfully manage interfirm relationships, called ______, are rare.
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Relational (or collaborative) capabilities
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Difficulty to locate partner with certain desirable attributes and stems from two sources, industry strucutre and network position.
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Partner rarity
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The issue of imitability pertains to what two levels?
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1. Firm level
2. Alliance/network level |
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Strategic alliances and networks function within a set of formal legal and regulatory frameworks. These formal institutions impact what two things?
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1. Antitrust (or collusion) concerns
2. Entry mode requirements |
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Following the “norm,” copying other organizations may be a low-cost way to gain legitimacy.
Ford chose obscure Chinese partners after “everybody else” in the global auto industry “cherry picked” the few top tier Chinese automakers as alliance partners (only JVs are allowed in this industry—see Integrative Case 1.3) |
The Normative pillar
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Internalized, taken-for-granted beliefs in alliances
British Aerospace (now BAE Systems): All future aircraft development would involve alliances |
The Cognitive pillar
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What are the three stages of formation (forming strategic alliances and networks)?
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1. To cooperate or not to cooperate? The firm makes a strategic choice concerning whether to form cooperative interfirm relationships or to reply on pure market transactions or M&As to grow the firm.
2. Contract or equity? The more tacit the resources and capabilities are, the more likely firms will prefer equity involvement. 3. Positioning the relationship. How to position a particular alliance within a number of relationships. |
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Investment instrument that enables its holder, who has paid for a small fraction of an asset's value, the right (but not the obligation) to increase his/her investment to eventually acquire the asset.
|
Option
|
|
|
Option investment in real operations as opposed to financial capital.
|
Real Option
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The difficulty in locating partners with certain desirable attributes.
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Partner rarity
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Capabilities to successfully manage interfirm relationships, called ______, are rare.
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Relational (or collaborative) capabilities
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Difficulty to locate partner with certain desirable attributes and stems from two sources, industry strucutre and network position.
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Partner rarity
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The issue of imitability pertains to what two levels?
|
1. Firm level
2. Alliance/network level |
|
|
Strategic alliances and networks function within a set of formal legal and regulatory frameworks. These formal institutions impact what two things?
|
1. Antitrust (or collusion) concerns
2. Entry mode requirements |
|
|
Following the “norm,” copying other organizations may be a low-cost way to gain legitimacy.
Ford chose obscure Chinese partners after “everybody else” in the global auto industry “cherry picked” the few top tier Chinese automakers as alliance partners (only JVs are allowed in this industry—see Integrative Case 1.3) |
The Normative pillar
|
|
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Internalized, taken-for-granted beliefs in alliances
British Aerospace (now BAE Systems): All future aircraft development would involve alliances |
The Cognitive pillar
|
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What are the three stages of formation (forming strategic alliances and networks)?
|
1. To cooperate or not to cooperate? The firm makes a strategic choice concerning whether to form cooperative interfirm relationships or to reply on pure market transactions or M&As to grow the firm.
2. Contract or equity? The more tacit the resources and capabilities are, the more likely firms will prefer equity involvement. 3. Positioning the relationship. How to position a particular alliance within a number of relationships. |
