Chapter 8: Collaboration Strategies Flashcards
Define alliance
Alliance is a general term that can refer to 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.
What are the four reasons for going solo (not collaborating)?
- Availability of capabilities
- Protecting proprietary technologies
- Controlling technology development and use
- Building and renewing capabilities
Define joint venture
A joint venture is 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.
What are the advantages to collaboration?
- It can enable a firm to obtain necessary skills or resources more quickly than developing them in house
- It can help a firm reduce its asset commitment and enhance its flexibility
- It can be a source of learning for the firm
- It can help to share the costs and risks of a project
- Collaboration may also facilitate the creation of a shared standard
Define licensing
A contractural arrangement whereby one organization or individual (the licensee) obtains the rights to use the proprietary technology of another organization or individual (the licensor).
What is the difference between capability complementation and capability transfer?
Capability complementation: combining the capabilities and other resources of partner firms but not necessarily transferring those sources between partners.
Capability transfer: the exchange of capabilities across firms in such a manner that partners can internalize the capabilities and use them independently of there particular development project.
Draw the technology alliance strategies matrix
Individual alliance Network of alliances
Capability A B
Complementation
Capability C D
Transfer
Define contract manufacturing
A form of outsourcing whereby a firm hires another firm to manufacture its products.
What two factors should be assessed before partner selection
Resource fit
Strategic fit
Define alliance contracts
Alliance contracts are legally binding contractural arrangements to ensure that partners are fully aware of their rights and obligations in the collaboration, and have legal remedies available if a partner should violate the agreement
Define equity ownership
Equity ownership is when each partner contributes capital and owns a specified right to a percentage of the proceeds from the alliance
Define relational governance
Relational governance are self-enforcing norms based on goodwill, trust, and reputation of the partners. These typically emerge over time through repeated experiences of working together.
What are the modes of collaborating?
Strategic alliance Joint venture Licensing Outsourcing Collective research organization
