CH 8: Collaboration Strategies

It is unusual for a company to lack certain complementary assets required to transform a body of technological knowledge into a commercial product. T/F

False

Research suggests that relational governance increases the contracting and monitoring costs of managing an alliance and impedes cooperation between alliance partners. T/F

False

Allured Architecture Inc. collaborated with Maze & Matiz Corp. to form a new architecture firm called AllureAmaze Inc. Both the firms had a significant equity stakein the new entity. This collaboration would most accurately be termed a(n) _____

Joint Venture

Greyer Corporation has developed a special drug that kills cancer cells. While the scientists at Greyer have the knowledge, they are short on equipment, money, and marketing know-how. In this situation, the most appropriate step for Greyer would be to a)come up with a completely new drug. b)forge forward and develop the drug on its own. c)find a partner to collaborate with to sell the drug. d)give up the idea of selling the drug altogether.

c)find a partner to collaborate with to sell the drug.

A firm cannot collaborate with its competitor. T/F

False

A firm's effectiveness at managing its collaborations will increase with the number of collaborations to which it is committed. T/F

False

Equity ownership helps to align the incentives of the partners and provides a sense of ownership and commitment to the project that can facilitate supervision and monitoring of the alliance. T/F

True

Some firms avoid collaboration for fear of giving up their proprietary technologies. T/F

True

Which of the following statements is true of resource fit? A)It encourages collaborations based on the combination of complementary resources to access resources a firm does not possess. b)It excludes resources that are supplementary. c)It seldom enables partners to achieve economies of scale by pooling of supplementary resources. d)It refers to the degree to which partners have compatible objectives and styles.

a)It encourages collaborations based on the combination of complementary resources to access resources a firm does not possess.

The R&D team of Zelda Technozone Incorporated has developed a prototype for a two-seater car that runs primarily on solar energy. Since the firm usually manufactures household appliances, the management acknowledges that it does not have the required competencies to manufacture this car on a large scale. It decides to access another firm's manufacturing competencies. Which of the following collaborative arrangements is most appropriate in this scenario? a)joint venture b)licensing out c)licensing in

a)joint venture

Which of the following is a feature of a joint venture that differentiates it from other forms of alliances? a)It usually does not result in the creation of a new business entity. b)It involves a significant equity stake by the partners. c)It increases asset commitment to products that will become rapidly obsolete. d)It increases cycle time of a technology.

b)It involves a significant equity stake by the partners.

Greyer Corp. manufactures surgical instruments. Systems Medico Inc. enters into a contractual arrangement with Greyer that allows it to use Greyer manufacturingmethods and management structure to produce and sell surgical instruments. Systems Medico must pay a yearly fee to Greyer for the use of its manufacturing processes. In this scenario, Systems Medico is the _____

licensee