Lecture 6: Collaboration Strategies

Question 1

What are the reasons for going solo? /Influencing Factors

Answer 1

1. Availability of capabilities
2. Protecting proprietary technologies
3. Controlling technology development and use
4. Building and renewing capabilities
   -> is the project key to renew or develop the firm’s capabilities

Question 2

Types of Strategic Collaborations

Answer 2

1. Strategic Alliances
2. Joint Ventures
3. Licensing
4. collaborative research organizations

Question 3

What is a Strategic Alliance?

Answer 3

= formal or informal agreement between two or more organizations to cooperate in some way
= Alliance strategy might emphasize
-> combining complementary capabilities or
-> transferring capabilities

Question 4

Joint Ventures

Answer 4

= A particular type of strategic alliance that entails significant equity investment and often establishes a new separate legal entity

Question 5

Licensing

Answer 5

= When an organization procures services or products from another company rather then producing them in-house

Question 6

Collective research organizations

Answer 6

= Organizations formed to facilitate collaboration among groups of firms

Question 7

How to Select Your Partner in Collaboration

Answer 7

= Resource fit
= Strategic fit
= Impact on opportunities and threats
= Impact on internal strengths and weaknesses
= Impact on strategic direction

Question 8

Partner Monitoring and Governance

Answer 8

= Successful collaborations require clear, yet flexible monitoring and governance mechanisms
-> often through Contractual agreement

= Equity ownership
-> Each partner contributes capital and owns a share of equity in the alliance
-> helps to align incentives and provides sense of owenrship

= Rational Governance
-> self-enforcing governance based on goodwill, trust, reputation

Question 9

What does a partner contract include?

Answer 9

1. What each partner is obligated to contribute
2. How much control each partner has in the agreement
3. When and how proceeds of collaboration will be distributed
4. Review and reporting requirements
5. Provisions for terminating the relationship