Homework answers / question archive / 1)While the investment and growth benefits associated with partnering generally yield substantial benefit to smaller firms that are pursuing rapid growth with limited resources, these benefits diminish with size such that the very largest MNEs generally find that the benefits of “going it alone” exceed the costs associated with partnering

1)While the investment and growth benefits associated with partnering generally yield substantial benefit to smaller firms that are pursuing rapid growth with limited resources, these benefits diminish with size such that the very largest MNEs generally find that the benefits of “going it alone” exceed the costs associated with partnering

Management

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1)While the investment and growth benefits associated with partnering generally yield substantial benefit to smaller firms that are pursuing rapid growth with limited resources, these benefits diminish with size such that the very largest MNEs generally find that the benefits of “going it alone” exceed the costs associated with partnering.

 

 

2. A vast majority of successful cross-border collaborations are founded and maintained by firms that acquire the other partner’s knowledge without sharing their own knowledge.

 

 

3. Which of the following can inhibit a firm’s ability to learn from the alliance?

 

4. The objectives of an alliance are more difficult to achieve when there is a greater number of joint activities, equity cross-holdings and cross-functional coordination.

 

 

5. An effective interface manager is someone who

 

 

6. Oil & Gas Limited and Small Tech Inc. announced an agreement to develop a new technology for the extraction of gas. Oil & Gas Limited will contribute financial resources and its expertise in gas extraction, while Small Tech will provide its expertise in R&D. To ensure the success of the collaboration, prior to the alliance, both companies should:

 

 

7. Equality between partners is essential, regardless of the governance structure.

 

 

8. Entering collaborative relationships with other firms is one way for firms to meet the needs of an increasingly complex environment.

 

9. Equity joint ventures are the preferred mode of arranging an alliance and should be employed whenever multiple companies are intending to collaborate.

 

 

10. Interface managers should be well acquainted with the company’s internal organizational processes and should have access to key managers in different parts of the organization.

 

 

11. When the alliance’s tasks are characterized by extensive functional interdependencies

 

12. Strategic alliances with customers are a form of collaboration that enable MNEs to increase their bargaining power and reduce their costs.

 

13. Formulating an agreement with respect to the termination of the venture at the outset of the collaboration demonstrates that the partners are not fully dedicated to the success of the alliance.

 

 

 

 

15. Cross-border collaborations have become increasingly important.  While the size of an MNE’s corporate allies is extremely important to the MNE’s performance, the quality of its corporate allies is only marginally important to the MNE’s performance.

 

 

16. Pre-alliance analysis is sufficient to ensure the success of a collaborative agreement.

 

 

 

 

18. Given that alliances are typically formed between two or more corporate entities that are also operating pre-existing businesses, alliance managers need to be flexible. These managers must accept that the alliance’s performance objectives will necessarily be moderately ambiguous. But, these same managers can be assured that the formal, written agreement between the alliance partners can be frequently referenced as a type of “rule book” that can be used to resolve any disputes in the alliance.

 

 

19. Collaboration reduces the time and risk associated with the development of new products.

 

 

20. Strategic alliances are only forged for long durations.  Firms should not enter collaborative agreements with a short-term horizon.