Chapter 8 Collaboration Strategies Flashcards

1
Q

What are the reasons for going solo

A
  1. availability of capabilties
    the firm may perceive no need to collaborate with other organizations—it may possess all the necessary capabilities and resources for a particular development project in-house.
  2. protecting proprietary technologies
  3. controlling technology development and use
  4. building and renewing capabilites

Alternatively, the firm may prefer to obtain complementary skills or resources from a partner, but there may be no available partner that is appropriate or willing to collaborate. A firm might also choose to develop a project as a solo venture if it is concerned that collaborating would put its proprietary technologies at risk, or if it seeks to have full control over the project’s development and returns. Furthermore, a firm’s solo development of a techno-
logical innovation might give it more opportunities to build and renew its capabilities.

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2
Q

What is a alliance?

A

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.

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3
Q

What are the advantages of collaborating?

A
  1. acquiring capabilities and resources quickly
  2. increasing flexibility
  3. learning from partners
  4. resource and risk pooling (One primary reason firms collaborate on a development project is to share the costs and risks of the project. This can be particularly important when a project is very expen-
    sive or its outcome highly uncertain)
  5. building a coalition around a shared standard (Firms may also collaborate on a development project when such a collaboration would facilitate the creation of a shared standard.)
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4
Q

With whom can you form collaboration?

A

Collaboration can include partnering with suppliers, customers, competitors, complementors, organizations that offer similar products in different markets, organizations
that offer different products in similar markets, nonprofit organizations, government organizations, universities, or others.

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5
Q

For which purposes can collaboration be used?

A

Collaboration can also be used for many different purposes, including manufacturing, services, marketing, or technology-based objectives.

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6
Q

What is joint venture?

A

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.

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7
Q

What is licensing?

A

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).

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8
Q

What are the most common forms of collaborative arrangements?

A

The most common forms of collaborative arrangements used in technological innovation include

  1. strategic alliances,
  2. joint ventures,
  3. licensing,
  4. outsourcing, and
  5. collective research organizations.
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9
Q

What is a strategic alliance?

A

A strategic alliance is a temporary relationship that can take many forms. It can be formalized in a contract or an informal agreement. It can be a short-term agreement or a long-term agreement, and it can include an equity investment made by the partners
in each other

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10
Q

What are the 2 dimensions that categorize a firm’s strategic alliance?

A

The first dimension is the degree to which alliances practice capability complementation versus capability transfer. The second dimension is whether the firm manages each alliance individually or manages a collective network of
alliances

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11
Q

What is capability complementary>

A

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

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12
Q

What is capability transfer?

A

Exchange of capabilities across firms in such a manner that partners can internalize the capabilities and use them independently of the particular development
project.

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13
Q

What are the four quadrants of Yves Doz and Gary Hamel?

A

In quadrant A are firms that forge an individual alliance to combine complementary technologies or skills needed for a project.

In quadrant B are firms that use a network of alliances to combine complementary skills and resources.

In quadrant C are firms that use individual alliances to transfer capabilities between them.

In quadrant D are firms that use a network of alliances to exchange capabilities and jointly develop new capabilities.

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14
Q

What are joint ventures?

A

Joint ventures are a particular type of strategic alliance that entails significant structure and commitment. While a strategic alliance can be any type of formal or informal relationship between two or more firms, a joint venture involves a significant equity invest-
ment from each partner and often results in establishment of a new separate entity.

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15
Q

What is licensing?

A

Licensing is a contractual arrangement whereby one organization or individual (the licensee) obtains the rights to use the proprietary technology (or trademark, copyright, etc.) of another organization or individual (the licensor). Licensing enables a firm to
rapidly acquire a technology (or other resource or capability) it does not possess.

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16
Q

Why do firms outsource?

A

Firms that develop new technological innovations do not always possess the competencies, facilities, or scale to perform all the value-chain activities for the new innovation
effectively or efficiently. Such firms might outsource activities to other firms.

17
Q

What is one common form of outsourcing?

A

One common form of outsourcing is the use of contract manufacturers. Contract manufacturing allows firms to meet the scale of market demand without committing to long-term capital investments or an increase in the labor force, thus giving the firm
greater flexibility.3

18
Q

What is contract manufacturing?

A

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

19
Q

What are some of the forms of collective research organizations?

A

Collective research organizations may take a number of forms, including trade associations, university-based centers, or private research corporations.

Many of these organizations are formed through government or industry association
initiatives

20
Q

What are some of the trade-offs between different modes of development?

A

speed
cost
control
potential for leveraging existing competencies
potential for developing new competencies
potential for accessing other firms’ competencies

see figure 8.2 (page 186 of book)

21
Q

On what will the success of collaborations depend?

A

The success of collaborations will depend in large part on the partners chosen

factors that influence the suiting of the partners can be boiled down to two dimensions: resource fit and strategic fit.

22
Q

What is resource fit and strategic fit?

A

Resource fit refers to the degree to which potential partners have resources that can be effectively integrated into a strategy that creates value. Such resources may
be either complementary or supplementary.

Strategic fit refers to the degree to which partners have compatible objectives and styles. The objectives of the partners need not be the same as long as the objectives
can be achieved without harming the alliance or the partners.

23
Q

What is governance?

A

The act or process of exerting authority and/or
control.

24
Q

What are the three types of governance mechanisms organizations use?

A

alliance contracts, equity ownership, and relational governance

25
Q

What are alliance contracts?

A

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.

26
Q

What is equity ownership?

A

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

27
Q

What is relational governance?

A

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