International inter-organisational collaboration Flashcards
Inter-organisational collaboration: definition
Cooperative, inter-organisational relationship negotiated in an ongoing communicative process, relying on neither market nor hierarchal mechanisms of control
Examples of inter-organisational collaboration
- Alliances
- Joint ventures
- Buyer-supplier arrangements
- Network
- Business groups
Meta-organisation =
Organisation whose agents are themselves legally autonomous and not linked through employment relationships
Types of inter-organisational collaboration:
Strategic alliance =
Strategic alliance = any agreement to work with another firm longer than a market contract.
Types of inter-organisational collaboration:
Joint venture =
Joint venture = two firms form a new subsidiary together, share costs, risks, profits.
eg, village farms int. and Emerald Therapeutics joint venture for low-cost, high-quality production of cannabis.
Types of inter-organisational collaboration:
Licensing agreement =
Licensing agreement = one firm lets the other use some intellectual property eg, technology
Types of inter-organisational collaboration:
Outsourcing =
Outsourcing = one firm pays another to perform tasks, handle operations or provide services for the company
eg, Apple iPhone produced in China, Foxconn
Some motives for collaboration
- Accelerated time to market
- Risk/cost sharing
- Access to new markets/knowledge
- Increase efficiency
Example of collaboration 2020
During the pandemic, governments and health authorities globally worked together to find a solution to the virus, as did software companies to create effective notification apps to prevent the spread.
COMMON INCENTIVES.
Factors in carefully selecting a partner.
> Resource fit
Strategic fit
Organisational fit
Cultural fit
Factors in selecting a partner: RESOURCE
RESOURCE
The degree to which partners have complimentary resources to create value.
Factors in selecting a partner: STRATEGIC
STRATEGIC
The degree to which partners have compatible objectives and vision.
Factors in selecting a partner: ORGANISATIONAL
ORGANISATIONAL
The degree to which partners have compatible organisational structures
Factors in selecting a partner: CULTURAL
CULTURAL
The degree to which partners have compatible values, logics and values.
Risks and challenges in inter-organisational collaboration
- OPPORTUNISM - “self-interest seeking with guile”, incomplete disclosure of info, calculated efforts to mislead, confuse.
- LEARNING RACE - some may leave the collab when they have picked up all desired skills/knowledge.
- LACK OF COLLABORATIVE EFFORT or inability to work together
*UNCERTAINTY
