Week 3

Question 1

Name the 4 types of alliances mentioned in the lectures, explain them shortly

Answer 1

1. learning alliance: arrangement between two or more firms aimed at generating, sharing and combining knowledge to enhance their competitive advantage.
2. international alliance: partnerships between two partnerships located in different countries. They often face high failure rates due to cultural clashes, trust issues and miscommunication. Increasing cultural distance undermines the partners’ interpretation of each other’s strategic intents and tends to hamper their effective communication during alliance formation and management.
3. cross-sector alliances:
   Cross sector alliance refers to a partnership between organizations from different sectors. Examples are partnerships between firms, universities, NGO and governments. They appear in different forms.
4. coopetition alliances: Coopetition alliances:
   Partnerships between competitor firms to achieve mutual goals but simultaneously compete with one another in markets, as well as other firms; horizontal alliances

Question 2

What are the motives for choosing a learning alliances? What is the main challenge?

Answer 2

• access to knowledge that firms lack
• efficiency and cost reduction (time consuming to develop it internally)
• overcome competency traps (external knowledge stimulates innovation). Otherwise to much focus on exploiting existing knowledge

Main challenge: knowledge sharing (learning) vs knowledge protection

Question 3

What are 7 factors that influence knowledge transfer in learning alliances? (AGARKKA)

Answer 3

• Absorptive capacity: the ability of a firm to acquire and apply external knowledge. Similar and high levels between partners enhance learning and reduces the need for knowledge protection
• Governance form: equity-based arrangements provide better learning and protection. Non equity preferred when if relational capital exists
• Alliance contracts: contractual clauses that stipulate knowledge transfer and protection. Contracts provide protection against knowledge spillover, but overreliance on contracts tends to damage relational capital/trust.
• Relational capital: influences partners openness and willingness to exchange knowledge but also acts as a safeguard against opportunism (less likely to exploit or misuse shared knowledge)
• Knowledge characteristics: tacit knowledge is often key motivation for alliance formulation but higher degree of tacitness impede knowledge transfer. It requires extra protection measures
• Knowledge practices: firms need to invest in supportive organizational routines, control and coordination mechanisms. Training systems and incentives encourages effective inter-firm learning
• Alliance staff: managers and employees play a crucial role in knowledge transfer and protection as gatekeeper

Question 4

What are motives/benefits of an international alliance? What is the main challenge?

Answer 4

• access to knowledge and capabilities that are not in home country
• entering restrictive markets
• enhance market penetration.
  (This is specific to the industry and market dynamics)

Main challenge: cultural synergies vs cultural adversities

Question 5

What are the 4 things for a manager to think of in an international alliance?

Answer 5

• Building cultural competence: become aware of cultural differences, collect knowledge of different cultural practices and build cross-cultural skills
• Alliance manager selection: select alliance staff with open minds and flexible personalities as well as those who demonstrate positive approaches during previous experiences in alliances or international business settings
• Partner selection: carefully consider potential partners; recognize tradeoffs between collaboration with a partner with a compatible national culture or seize an opportunity with a partner that is less compatible but immediately available
• Work climate: create an open, flexible and collaborative work climate, where partners are able and willing to acknowledge and bridge cultural differences

Question 6

What are motives/benefits of an cross sector alliance? What is the main challenge?

Answer 6

• academic knowledge for innovation (university)
• to execute large infrastructural projects and for the green image (government)
• Corporate social responsibility (NGO)

Main challenge: strike a balance between capturing synergies and bridging dissimilarities

Question 7

How to manage cross- sector alliances?

Answer 7

• Enforcing power neutrality; assure that partners participation in communication is democratic. All partners involved should have an equal voice in determining the outcomes, even if one of them possesses a power advantage
• Creating autonomy and transparency: autonomy refers to the extent in which a participant has an equal opportunity to express its interest. Transparency suggests that all partners clearly communicate their goals interests and decisions, so others understand their position
• Building a culture of collaborative commitment: foster an alliance culture where differences are acknowledged and reconciled to strengthen cooperation

Question 8

What are motives/benefits of an cross sector alliance? What is the main challenge?

Answer 8

• economies of scale and scope seize opportunities
• innovation and learning
• setting industry standards
• competitive benchmarking

Main challenges : competitive tensions, knowledge leaking, lock in effects, reduced flexibility and coordination costs

Question 9

How to manage coopetition alliances

Answer 9

• Alliance Climate: Foster trust and psychological safety for open collaboration and proactively deal with competitive tensions and adversities
• Management Support: Leadership should set clear expectations to balance private vs. shared interests.
• Third-Party Mediation: Use neutral mediators to resolve conflicts objectively.
• Prospecting: Continuously seek new win-win opportunities to sustain the alliance