Final Exam Review
Lt 8 collaboration
Collaboration is important because of... 1) access to diff info and knowledge 2)access to different resources
3) it can increase innovation performance
Collaboration within a firm- internal- teamwork based collaboration-responsibilities of a team leader –
scheduling, delegation, motivating, evaluate performance, making decisions-conflict resolution, goal alignment,
resource allocation. - team /leader roles- traditional vs. current roles.
Collaboration with an org.-external- alliance based collaboration. Collaboration with other org is important coz it
helps firms access knowledge, info, resources within and outside the firm. It also helps you share risk and costs
Network -social capital-- a form of network and the concept include-actors/node- can be an
individual/companies and tie—a connection between two node
Different kinds of networks-
A) RELATIONAL-this is talking about the strength of the relationship and how close they are- you have strong tie
benefits: i) easily transfer tacit knowledge /info. ii) it requires mutual understanding. Weak tie:-gives u different
info, ii) gives access to diff info-how people think about your product. Iii) gives you diverse info and knowledge
B) STRUCTURE 2kinds- i) positional-at the individual/actor level-central position and structural hole-someone can
have more/diff information pool, information control-whether you want to give it or not, act as a broker of
information. ii) structural –at the network level-*closed network benefits include- trust between partners,
ii)easy to transfer info between the network iii)information goes quickly-a function of density, iv) a develops
governance mechanism coz if you do something good or bad the people in the network will know v)efficient for
high benefit networks *open network benefit- access to diff info that is not shared with within the network.
Ii)get info without peoples knowledge.
---In alliances you have either Common benefit (cooperation) and private benefit(competition)
Reasons 4 going solo-a firm going solo is influenced by
1. Availability of capabilities-does the firm have needed capability in house?
2. Protecting proprietary tech- how important is it to keep exclusive control of tech
3. Controlling technology development and use- how important is it for firm to direct development process
4. Building and renewing capabilities- is the project key to renewing or developing the firms’ capabilities?
Advantages of collaborating
1. Obtaining needed skills or resources more quickly 2) Reducing asset commitment and increase flexibility
3) Learning from partner 4) Sharing costs and risks 5) Can build cooperation around a common standard
Types of Collaborative Arrangements
Strategic Alliances: formal or informal agreements between two or more organizations (or other entities) to
cooperate in some way. In an alliance, there can be more than 2 firms (e.g., Star Alliances). A firm can have more
than one alliance at one time. Cooperation and competition dynamics occur
Joint Ventures: A particular type of strategic alliance that entails significant equity investment and often
establishes a new separate legal entity.
Licensing: a contractual arrangement that gives an organization (or individual) the rights to use another’s
intellectual property, typically in exchange for royalties.
Outsourcing: When an organization (or individual) procures services or products from another rather than
producing them in-house.
Collective Research Organizations: Organizations formed to facilitate collaboration among a group of firms.
--Patners are based on fit btw 2 firms. Patnerships leads to 2 major benefit- cost economizing and long term position Final Exam Review
Choosing a mode of collaboration
Choosing and Monitoring Partners –
A) Partner Selection
Resource fit: How well does the potential partner fit the resource needs of the project? Are resources
complementary or supplementary?
Strategic fit: Does the potential partner have compatible objectives and styles?- resource fit and strategic fit
Impact on Opportunities and Threats: How would collaboration impact bargaining power of customers and
suppliers, degree of rivalry, threat of entry or substitutes?
Impact on Internal Strengths and Weaknesses: Would collaboration enhance firm’s strengths? Overcome its
weaknesses? Create a competitive advantage?
Impact on Strategic Direction: Would the collaboration help the firm achieve its strategic intent
B) Partner monitoring and Governance Successful collaborations require clear yet flexible monitoring and governance
mechanisms. May utilize legally binding contractual arrangements which-i) Helps ensure partners are aware of rights
and obligations. Ii) Provides legal remedies for violations.
Contracts often include: 1) what each partner is obligated to contribute. 2) How much control each partner has in
arrangement. 3) When and how proceeds of collaboration will be distributed. 4) Review and reporting requirements.
5)Provisions for terminating relationship
article -Birkinshaw et al., (2007) Finding and forming partnership : networks
Difficulties related to finding
Finding refers essentially to the breadth of search that is conducted. How easy is it to identify the right individuals or
organizations with which you want to interact? Do you already know who they are, or will you need to put considerable
effort into locating the right actors?- geographic barrier, technology barrier-communication, institutional –culture btw 2
Finding a new partner is enabled by the scope and diversity of your cooperation and by your capacity 2 go beyond the
way of your thinking Final Exam Review
Forming is enabled by your past experiences with relationship building, the strength of your position in the industry and
an open attitude toward knowledge sharing
Challenges associated with forming
Forming refers to the attitude of prospective partners towards your firm. How keen are they likely to be to work with
you? Do you expect them to work hard to build the relationship themselves, or do you expect them to resist your efforts
because of different perspectives?
What to do in “new relationships”/ turning new networks in performing partners (manage a new rlp) 4 things
i) Keeping the network up-to-date and engaged ii) Building trust and reciprocity across the network
iii) Understanding your own position in the network iv) Learning to let go- let go of wat u av be4 to gain
something from new partner partnership doesn’t work out, cut them loose or its finished, move on to other partnerships Final Exam Review
Creating new networks in proximate areas. Eg, lego, Ericson
i)Seeking out new networks in distant areas. E.g. BT, Procter & Gamble ii) Building relationships with unusual partners.
Eg, Novo iii)Moving into uncharted territory
major outcomes of partnership- 1)Cost economizing and 2)Long term positioning
How does a leader know who is influential and if they have the right expertise?
How does a leader make the balance of formal and informal structure?
Leaders need to ensure that influence and decision authority flows to the right people in a network
Consensus and participative leadership
Outside ideas and practises
What is partnering- a rlp in which 2 parties are involved with d development of successful, long term, strategic
relationships based on achieving best practice and sustainable competitive advantage
Cooperation- creates d necessary complementary inputs enabling the companies to capitalize on eco of scope
Motives for partnership: (3 major motives)
a) Motives related to basic and applied research and some general characteristics of technological development: Final Exam Review
-Increased complexity and intersectoral nature of new technologies, cross-fertilization of scientific
-disciplines and fields of technology, monitoring of evolution of technologies, technological synergies,
-access to scientific knowledge or to complementary technology:
-Reduction, minimizing and sharing of uncertainty in R&D:
-Reduction and sharing of costs of R&D:
b) Motives related to concrete innovation processes:
--Capturing of partner's tacit knowledge of technology, technology transfer, technological leapfrogging:
--Shortening of product life cycle, reducing the period between invention and market introduction:
C) Motives related to market access and search for opportunities:
--Monitoring of environmental changes and opportunities:
--Internationalization, globalization and entry to foreign markets:
Each motive have diff weight 4 diff companies
Different node- strong vs weak node- diff node give diff benefit
a. What factors influence firm’s decision whether they want to protect/not protect
b. Zhao’s article: 3 preconditions for imitation
i. 3 preconditions for imitation: the motivation to imitate, the ability to
imitate and the possibility of circumventing legal restrictions against
c. The motivation to imitate: is low when the value of a technology is highly dependent on the
proprietary firm's internal resources. Innovating firms can discourage imitation by by developing
technologies that require complementary knowledge and resources not readily available to
d. The acquisition of a firm's complementary knowledge developed in other countries is subject to the
constraints of geographic distance and IPR protection in those countries. Therefore, a competitor
with the intention and ability to imitate a piece of technology in a weak IPR environment faces
much higher costs to obtain complementary knowledge that is located across national borders and
guarded by effective IPR.
i. How to protect?
1. Reduce imitatio