Chapter 8

Question 1

Why would a firm choose to go solo?

Answer 1

1. Availability of capabilities, if you already have all the capabilities you dont need to work together.
2. Protecting proprietary technologies, fear of giving up proprietary tehcnologies.
3. controlling technology development and use, have complete control over the process.
4. Building and renewing capabilities, the development efforts are the key to improveming their own capabilities.

Question 2

What are the advantages of collabaration?

Answer 2

Acquiring capabilities and resources quickly.
reducing asset commitment and increase flexibility,
learning from partners,
sharing resources and risks,
building coalitions around a shared standard.

Question 3

What are traditional collaborative arrangments?

Answer 3

strategic alliance, a broad class of collaboration activities that
may range from highly structured (e.g., joint ventures) to informal
joint venture, partnership between firms that entails a significant equity
investment and often results in the creation of a new separate entity.
licensing, Licensing involves the selling of rights to use a particular technology (or other
resource) from a licensor to a licensee
outsourcing, enables a firm to rapidly access another firm’s expertise, scale, or
other advantages.
collective research organization
informal collaboration

Question 4

What are the benefits and risks of strategic alliances?

Answer 4

benefits:
Knowledge transfer to develop new
competencies or create new knowledge.
Alliances can enhance a firm’s overall level of flexibility.

Risk:
It requirces extensive coordination and cooperation which is difficult.Risk of opportunism and giving away too much