Product development management and collaboration strategies - Words

Question 1

Alliance

Answer 1

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

Question 2

Relational governance

Answer 2

Self-enforcing norms based on goodwill, trust and reputation of the partners. These typically emerge over time through repeated experiences of working together.

Question 3

Equity ownership

Answer 3

When each partner contributes capital and owns a specified right to a percentage of the proceeds from the alliance.

Question 4

Alliance contracts

Answer 4

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.

Question 5

Contract manufacturing

Answer 5

When a firm hires another firm (often specialized manufacturer) to manufacture products.

Question 6

Capability complementation and transfer

Answer 6

Combining (“pooling”) the capabilities and other resources of partner firms, but not necessarily transferring those recourses between the partners.

Question 7

Licensing

Answer 7

A contractual arrangement whereby one organization or individual (the licensee) obtains the rights to use the proprietary technology (or trademark or copyright etc.) of another organization or individual (the licensor).

Question 8

Joint venture

Answer 8

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.