chapter 8 Flashcards
alliance
any type of relationship between firms. alliances may be short or long term and may include formally contracted agreements or be entirely informal in nature.
joint venture
a partnership between two or more firms involving a significant equity stake by the partners and often resulting in the creation of a new business entity. a particular type of strategic alliance that entails significant structure and commitment. it often results in establishment of a new separate entity.
collaboration
can include partnering with suppliers, customers, competitors, complementors, organisations that offer similar products in different markets, government organisations, universities, or others. it can also be used for many different purposes, including manufacturing, services, marketing, or technology-based objectives.
licensing
a contractual arrangement whereby one organisation or individual (the licensee) obtains the rights to use the proprietary technology (or trademark, copyright, etc.) of another organisation or individual (licensor). it enables a firm to rapidly acquire a technology it does not possess. for the licensor, it can enable the firm’s technology to penetrate a wider range of markets than it could on its own.
strategic alliances
used to access a critical capability that is not possessed in-house or to exploit their own capabilities more fully by leveraging them in another firm’s development efforts.
Doz & Hamel
argue that it is useful to categorise a firm’s alliance strategy along two dimensions; (1) the degree to which alliances practice capability complementations vs capability transfer and (2) whether the firm manages each alliance individually or manages a collective network of alliances.
capability complementation
means combining (“pooling”) the capabilities and other resources of partner firms, but not necessarily transferring those resources between the partners.
capability transfer
the exchange of capabilities across firms in such a manner that partners can internalise the capabilities and use them independently of the particular development project.
outsourcing
activities may be outsourced to other firms if a firm does not possess the competencies, facilities, or scale to perform all the value-chain activities for the new innovation effectively or efficiently. a common form of outsourcing is contract manufacturing.
contract manufacturing
occurs when a firm hires another firm (often a specialised manufacturer) to manufacture its products. it enables firm to specialise in those activities central to their competitive advantage while other firms provide necessary support and specialised resources the firm does not possess. it allows firms to meet the scale of market demand without committing to long-term capital investments or an increase in the labour force.
collective research organisation
may take a number of forms, including trade organisations, university-based centers, or private research corporations. many of these organisations are formed through government or industry association initiatives. other research organisations have been formed solely through the initiative of private companies.
resource fit
refers to the degree to which potential partners have resources that can be effectively integrated into a strategy that creates value. such resources may be complementary (the need to access resources the firm does not possess) or supplementary (similar resources to those possessed by the firm to gain economies of scale).
strategic fit
refers to the degree to which partners have compatible objectives and styles. the objectives do not need to be the same as long as the objectives can be achieved without harming the alliance or the partners.
governance
the act or process of exerting authority and/or control.
alliance contracts
legally binding contractual arrangements to ensure that partners (a) are fully aware of their rights and obligations in the collaboration and (b) have legal remedies available if a partner should violate the agreement.
