Module 4: Creating value externally - choosing between alliances and acquisitions

Question 1

Types of synergies (3)

Answer 1

• Modular synergy
• Sequential synergy
• Reciprocal synergy

Question 2

Need for control high with

Answer 2

• High behavioural uncertainty
• Strong competition for resources
• Low trust
• Low absorptive capacity

Question 3

Need for strategic flexibility high with

Answer 3

• High strategic uncertainty
• Dispersed knowledge
• High uncertainty about asset quality
• High managerial indigestibility risk

Question 4

Sources of relational rents

Answer 4

1. Relation-specific assets
2. Knowledge-sharing routines
3. Complementary resources
4. Effective governance