Question 1

To protect against opportunism within an alliance relationship, a firm could minimize the threat by:

Accepted Answer

A) ​Walling off critical capabilities. 
B) ​Swapping critical capabilities through credible commitments. 
C)  ​Holding each other "hostage." 
D)  ​All of the above. 
A) ​Walling off critical capabilities. 
B) ​Swapping critical capabilities through credible commitments. 
C)  ​Holding each other "hostage." 
D)  ​All of the above.

Question 2

Stock markets are more likely to respond favorably to companies that engage in alliance activities if the partners:

Accepted Answer

A) ​Are from countries with no political risk. 
B) ​Have previous alliance experiences. 
C)  ​Possess similar resources. 
D)  ​Are small in size. 
A) ​Are from countries with no political risk. 
B) ​Have previous alliance experiences. 
C)  ​Possess similar resources. 
D)  ​Are small in size.

Question 3

In international alliances, setting up a parallel and reciprocal relationship in the foreign partner's home country may decrease the incentives for both partners to cooperate.

Accepted Answer

A) True 
 B)False

Question 4

What are the drawbacks of forming an alliance? How does the learning race become a drawback?

Accepted Answer

​Alliances have a number of drawbacks. F

Question 5

From the perspective of network position, firms located in the center of interfirm networks accumulate less power and influence.

Accepted Answer

A) True 
 B)False

Question 6

A firm in an alliance is likely to have other interfirm alliances as well, which makes it important to:

Accepted Answer

A) ​Close the door to additional alliances. 
B) ​Insist on direct monitoring and control. 
C)  ​Manage the relationships as a corporate portfolio. 
D)  ​None of the above. 
A) ​Close the door to additional alliances. 
B) ​Insist on direct monitoring and control. 
C)  ​Manage the relationships as a corporate portfolio. 
D)  ​None of the above.

Question 7

In regards to strategic alliances and networks, in the traditional industry-based view, firms are dependent players.

Accepted Answer

A) True 
 B)False

Question 8

Successful alliances and networks normally avoid socially complex relations among partners.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a subjective factor that affects the performance of alliances and networks?

Accepted Answer

A) Equity invested. 
B) Learning and experience. 
C)  Profitability. 
D)  Market share. 
A) Equity invested. 
B) Learning and experience. 
C)  Profitability. 
D)  Market share.

Question 10

Why and how might a "real option" be useful in a joint venture?

Accepted Answer

When a joint venture is launched, one of

Question 11

In the context of strategic alliances, a constellation is:

Accepted Answer

A) ​An industry agreement in which firms compete against one another. 
B) ​A two-firm equity-based partnership. 
C)  ​A strategic network. 
D)  ​All of the above. 
A) ​An industry agreement in which firms compete against one another. 
B) ​A two-firm equity-based partnership. 
C)  ​A strategic network. 
D)  ​All of the above.

Question 12

In alliance formation, the question of whether to cooperate or not cooperate is essentially answered by whether a firm goes the route of market transactions/acquisitions or forms an alliance.

Accepted Answer

A) True 
 B)False

Question 13

Higher level shared technology is associated with lower profitability for parent firms.

Accepted Answer

A) True 
 B)False

Question 14

Strong ties between alliance partners are:

Accepted Answer

A) ​Less costly to maintain than weak ties. 
B) ​Better for exploring new opportunities. 
C)  ​The initial foundation of many strategic alliances. 
D)  ​Needed for greater flexibility. 
A) ​Less costly to maintain than weak ties. 
B) ​Better for exploring new opportunities. 
C)  ​The initial foundation of many strategic alliances. 
D)  ​Needed for greater flexibility.

Question 15

Firm X is considering an alliance with Firm A. Which of the following institution-based consideration is most important to Firm X's decision?

Accepted Answer

A) ​High entry barriers discourage our competitors from making similar alliances. 
B) ​The alliance will create an acceptable level of value for us. 
C)  ​Local content requirements are minimal. 
D)  ​The opportunity to learn from Firm A is significant. 
A) ​High entry barriers discourage our competitors from making similar alliances. 
B) ​The alliance will create an acceptable level of value for us. 
C)  ​Local content requirements are minimal. 
D)  ​The opportunity to learn from Firm A is significant.

Question 16

What is opportunism in the context of alliances, and what can be done to minimize its threat?

Accepted Answer

​Opportunism is defined as self-interest

Question 17

Weak ties in organizational relationships:

Accepted Answer

A) Are more trustworthy and are cultivated over a long period of time. 
B) Are associated with exchanging finer-grained information. 
C)  Provide an informal, social control mechanism. 
D)  Are less costly to maintain. 
A) Are more trustworthy and are cultivated over a long period of time. 
B) Are associated with exchanging finer-grained information. 
C)  Provide an informal, social control mechanism. 
D)  Are less costly to maintain.

Question 18

For equity-based alliances and networks, the nature of shared resources and the degree of tacitness and complexity are:

Accepted Answer

A) ​Low. 
B) ​Moderate. 
C)  ​High. 
D)  ​Irrelevant. 
A) ​Low. 
B) ​Moderate. 
C)  ​High. 
D)  ​Irrelevant.

Question 19

The marriage/divorce metaphor works if the alliance has only two partners, but not if it involves more than two.

Accepted Answer

A) True 
 B)False

Question 20

Examples of equity-based alliances include strategic investment.

Accepted Answer

A) True 
 B)False

To protect against opportunism within an alliance relationship, a firm could minimize the threat by:

Stock markets are more likely to respond favorably to companies that engage in alliance activities if the partners:

In international alliances, setting up a parallel and reciprocal relationship in the foreign partner's home country may decrease the incentives for both partners to cooperate.

What are the drawbacks of forming an alliance? How does the learning race become a drawback?

From the perspective of network position, firms located in the center of interfirm networks accumulate less power and influence.

A firm in an alliance is likely to have other interfirm alliances as well, which makes it important to:

In regards to strategic alliances and networks, in the traditional industry-based view, firms are dependent players.

Successful alliances and networks normally avoid socially complex relations among partners.

Which of the following is a subjective factor that affects the performance of alliances and networks?

Why and how might a "real option" be useful in a joint venture?

In the context of strategic alliances, a constellation is:

In alliance formation, the question of whether to cooperate or not cooperate is essentially answered by whether a firm goes the route of market transactions/acquisitions or forms an alliance.

Higher level shared technology is associated with lower profitability for parent firms.

Strong ties between alliance partners are:

Firm X is considering an alliance with Firm A. Which of the following institution-based consideration is most important to Firm X's decision?

What is opportunism in the context of alliances, and what can be done to minimize its threat?

Weak ties in organizational relationships:

For equity-based alliances and networks, the nature of shared resources and the degree of tacitness and complexity are:

The marriage/divorce metaphor works if the alliance has only two partners, but not if it involves more than two.

Examples of equity-based alliances include strategic investment.

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Diversifying, Acquiring, and Restructuring

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters

Exam 7: Making Strategic Alliancee and Networks Work

To protect against opportunism within an alliance relationship, a firm could minimize the threat by:

Stock markets are more likely to respond favorably to companies that engage in alliance activities if the partners:

In international alliances, setting up a parallel and reciprocal relationship in the foreign partner's home country may decrease the incentives for both partners to cooperate.

What are the drawbacks of forming an alliance? How does the learning race become a drawback?

From the perspective of network position, firms located in the center of interfirm networks accumulate less power and influence.

A firm in an alliance is likely to have other interfirm alliances as well, which makes it important to:

In regards to strategic alliances and networks, in the traditional industry-based view, firms are dependent players.

Successful alliances and networks normally avoid socially complex relations among partners.

Which of the following is a subjective factor that affects the performance of alliances and networks?

Why and how might a "real option" be useful in a joint venture?

In the context of strategic alliances, a constellation is:

In alliance formation, the question of whether to cooperate or not cooperate is essentially answered by whether a firm goes the route of market transactions/acquisitions or forms an alliance.

Higher level shared technology is associated with lower profitability for parent firms.

Strong ties between alliance partners are:

Firm X is considering an alliance with Firm A. Which of the following institution-based consideration is most important to Firm X's decision?

What is opportunism in the context of alliances, and what can be done to minimize its threat?

Weak ties in organizational relationships:

For equity-based alliances and networks, the nature of shared resources and the degree of tacitness and complexity are:

The marriage/divorce metaphor works if the alliance has only two partners, but not if it involves more than two.

Examples of equity-based alliances include strategic investment.

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Diversifying, Acquiring, and Restructuring

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters