9 Flashcards
What is the definition of cooperation as presented in the text?
Cooperation is defined as “a long-term collaboration with joint use of resources between legally independent companies.”
What is the distinction between “bilateral cooperation” and “network” in the context of business collaborations?
“Bilateral cooperation” refers to collaborations involving two partners, while “network” is used when there are three or more partners.
What are the three approaches that explain why companies enter into cooperations?
The three approaches that explain why companies enter into cooperations are: transaction theory, market-oriented explanations, resource-oriented declarations
According to transaction theory, under what conditions are cooperations suitable for minimizing transaction costs?
Cooperations are suitable for minimizing transaction costs if: the costs of in-house production are higher than those of external procurement, the market partners have largely the same information, and the transaction-specific investments are not very high
From a market-oriented perspective, what are the reasons for companies to engage in cooperations?
From a market-oriented perspective, companies engage in cooperations to: improve their positioning, build up and defend competitive advantages, and influence the market structure
What is the underlying assumption of resource-oriented explanations for cooperations?
The underlying assumption is that if partners have different resource endowments, the joint use of resources represents a significant advantage
What are some of the decisive advantages attributed to cooperations in recent years?
The decisive advantages attributed to cooperations are: market entry or increased market power, transfer of skills or access to skills from another company, broadening of financial or human resources and better use of existing capacities, faster access to business, a much lower level of commitment to a new business segment than at the time of acquisition, the distribution of costs and risk among the cooperation partners
What are the three main disadvantages of cooperations?
The three main disadvantages of cooperations are: less freedom or dependence on partners, the division of cooperation results can be a field of conflict, existing differences can lead to a high level of control and time-consuming coordination
What is a strategic alliance?
A strategic alliance is a cooperation in which legally independent companies pursue a common strategy to improve their competitive position
What characterizes strategic alliances in terms of the relationship between the cooperating companies and the industry they operate in?
Strategic alliances are characterized by cooperation with competitors from the same industry, they represent a loose form of cooperation based on agreements and contracts, with coordinated behavior and strategy
What is a joint venture?
A joint venture is economic cooperation between companies where a legally independent company is jointly established or acquired
What are the different ways in which a joint venture can be established?
The different ways to establish a joint venture are: founding a new company, investing in an existing company, or jointly taking over another company
Why have joint ventures become more prevalent in recent years, particularly in the context of globalization?
Joint ventures have increased due to globalization, especially when a regional partner is needed in foreign markets, the joint venture acts as a domestic company, contributing market-specific know-how and reducing capital needs
What are some empirical challenges often associated with joint ventures?
Some empirical challenges associated with joint ventures are: conflicts of objectives between partners, personnel policy inconsistencies, problems with knowledge loss and cultural integration
What is the focus of cooperative strategy?
The focus of cooperative strategy is on the mutual benefits and how the cooperation can be developed
