ARA Model For this part, ARA Model is used to analyze the strategic cooperation between Siemens and Vestas inside the nacelle testing center and identify relative substance, functions and scenarios toward future development together with effects.
A relationship refers to mutually oriented interaction between two reciprocally committed parties. ARA Model is used to analyze a relationship in the context of other relationships in the network. There are two dimensions: function and substance. The substance is what the relationships affect on the two sides, including three layers: activity links, resource ties and actor bonds. There are functions for the dyad, individual party and third parties (Håkan Håkansson, 1995).
In the relationship between …show more content…
The closeness makes them be more exposure to and affect each other. As Siemens has a leadership position in offshore wind power market, in 2013, it spent 5.7% of revenue, €4.3 billion in R&D (siemens, 2014). The technology advantage spurs cross-organizational communication and the share of basic testing data gives them opportunities of data-analysis. Secondly, referring to the resource ties, the existence of nacelle testing center brings together technical resources for realizing synergy. Apparently, there is mutual dependence inside because Siemens’ leading position generates potential power toward Vestas dependence on it for R&D (Karen S. Cook, 1995). But the level of the power is not so clear because Vestas has other partners like joint venture with Mitsubishi Heavy Industries co. Ltd (vestas, 2013). By and large, the cooperation inside nacelle can be identified as strategic alliance, which means there are consensual ties with a common goal to lower down the cost of R&D, increase the reliability of the testing results. But outside the cluster, each firm still has its own emerging networks to conduct value chain activities …show more content…
On a single level, each party is benefit from embedding their organizational goals into the relationship. As Vestas strategic direction mostly aims at lowering down cost and ensuring operational efficiencies (vestas, 2013), the cooperation is exactly in line with this goal. From a network view, as two companies are foundations of Lorc testing center, they have corresponding responsibilities to maintain positive relationship sustainable to competitiveness of the whole
A relationship refers to mutually oriented interaction between two reciprocally committed parties. ARA Model is used to analyze a relationship in the context of other relationships in the network. There are two dimensions: function and substance. The substance is what the relationships affect on the two sides, including three layers: activity links, resource ties and actor bonds. There are functions for the dyad, individual party and third parties (Håkan Håkansson, 1995).
In the relationship between …show more content…
The closeness makes them be more exposure to and affect each other. As Siemens has a leadership position in offshore wind power market, in 2013, it spent 5.7% of revenue, €4.3 billion in R&D (siemens, 2014). The technology advantage spurs cross-organizational communication and the share of basic testing data gives them opportunities of data-analysis. Secondly, referring to the resource ties, the existence of nacelle testing center brings together technical resources for realizing synergy. Apparently, there is mutual dependence inside because Siemens’ leading position generates potential power toward Vestas dependence on it for R&D (Karen S. Cook, 1995). But the level of the power is not so clear because Vestas has other partners like joint venture with Mitsubishi Heavy Industries co. Ltd (vestas, 2013). By and large, the cooperation inside nacelle can be identified as strategic alliance, which means there are consensual ties with a common goal to lower down the cost of R&D, increase the reliability of the testing results. But outside the cluster, each firm still has its own emerging networks to conduct value chain activities …show more content…
On a single level, each party is benefit from embedding their organizational goals into the relationship. As Vestas strategic direction mostly aims at lowering down cost and ensuring operational efficiencies (vestas, 2013), the cooperation is exactly in line with this goal. From a network view, as two companies are foundations of Lorc testing center, they have corresponding responsibilities to maintain positive relationship sustainable to competitiveness of the whole