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Chapter 6: Engaging in Cross-Border Collaboration by Mind Map: Chapter 6: Engaging in Cross-Border
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Chapter 6: Engaging in Cross-Border Collaboration

Need to pursue multiple sources of competitive advantage simultaneously leads to need for integrated and interdependent network organization and collaboration with other firms

Strategic Alliance

interfirm cooperation agreements


Joint Venure

Patent Licensing



R&D Consortia


Cooperation Agreement


Alliances between companies and industrialized countries

Focus shift from distribution to creation of new products

Strategic Alliances for last a short time


Technology Exchange

Global Competition

Industry Convergence

Economies of Scale

Reduction of Risk

Alternative to Merging

Risks and Costs

Two fashionable management concepts in the 80's

Triad Power

Stick to Your Knitting

Risk of Competitive Collaboration

One of both partners abuses SA to gain advantage over the other

Competitive Collaboration

You strengthen your competition

Competition can learn from you

Might be precursor to takeover

Challenge of Building Alliances and Making them Work


Analysis - Partner Selection, Need Data on Partner, Overcome barriers in physical and cultural distance, Impossible to predict how partnership will develop

Negotiation - Escalating Commitment

Decision Making - Alliance Scope, Complicated cross-holdings of ownership & equity, Need for cross-functional coordination or integration, Scope of joint activities


Coordination - Managing the boundaries, Choose the right boundaries, SA can be independent legal organization with complete freedom to manage tasks, Operations can be managed by both parents

Integration - Managing Knowledge Flows, Ensure full exploitation of learning potential, Prevent outflow of information/knowledge that you don't want your partner to have, Gatekeepers: Interface Managers

Adaptation - Providing Strategic Direction, Effective Governance Structure, Integrative Quality, Companies must agree on SA leaders and try their best to help them