Collaboration Strategies
Reasons for going solo
Availability of capabilities; Does firm have needed capabilities in house? Does a potential partner?
protecting proprietary technology; How important is it to keep exclusive control of the technology?
controlling tech development and use; How important is it for firm to direct development process and applications?
building and renewing capabilities; Is the project key to renewing or developing the firm's capabilities?
Advantages of collabrating
PROS
obtaining needed skills or resources more quickly
reducing asset commitment and increase flexibility
learning from partner
share costs and risk
can build cooperation around a common standard
Types of collaborative arrangements
Strategic alliances
formal or informal agreements between two or more orgs (or other entities) to cooperate in some way
Joint Venture
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
Partner Selection
Resource fit
How well does potential fit the resource needs of the project? Are resources complementary or supplementary?
Strategic fit
Impact on opportunities and threats
Impact on internal strengths and weaksnesses
Impact on strategic direction
Does the potential partner have compatible objectives and a styles?
How would collaboration impact bargaining power of costumers and suppliers , degree of rivalry, threat of entry or substitutes
Would collaboration enhance firm's strengths ? Overcome its weaknesses? Create a CA?
Would the collaboration help the firm achieve its strategic intent?
Partner Monitoring and Governance
Successful collaborations require clear yet flexible monitoring and governance mechanisms
may utilize legally binding contractual arrangements
Contracts often include
help ensure partners are aware of right and obligations
provides legal remedies for violations
what each partner is obligated to contribute
how much control each partner has in arrangement
when and how proceeds of collaboration will be distributed
Review and reporting requirements
provisions for terminating relationship
May also use shared equity ownership (i.e. each partner contributes capital and owns a share of equity in the alliance)
helps to align incentives and provide sense of ownership
May rely relational governance (self-enforcing governance based on the goodwill, trust, and reputation of partners)
build over time
can facilitate more extensive cooperation, sharing, and learning by partners