Exam 7: Strategic Alliances and Networks

Which is not an advantage of strategic alliances and networks? a. Reduce costs, risks and uncertainties. b. Costs of negotiation and coordination. c. Gain access to complementary assets and capabilities. d. Opportunities to learn from partners. e. Possibilities to use alliances and networks as real options.

Which (if any) of the following are not involved in the stages of forming business relationships? a. The decision to cooperate. b. The decision to not cooperate. c. The choice of contract or equity. d. Positioning the Relationship. e. All of the above are involved.

Weak ties excel at connecting with distant others who possess unique and novel information.

The stock market responds favorably to alliance activities, but only under which circumstances? a. Complementary resources. b. Previous alliance experience. c. Ability to manage the host country's political risk. d. Partner buyouts. e. All of the above.

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

Which of the following are not true regarding managers involved in alliances and networks? a. They require relationship skills which foster trust with partners. b. They must guard against opportunism. c. They must recognize that interests of the firms fully overlap. d. They have to represent the interests of their respective firms. e. They must attempt to make the complex relationship work.

A non-JV, equity-based alliance can be regarded as two firms "getting married," but not having "children."

Since firms act to enhance or protect their legitimacy, copying other reputable organizations is not a way to gain legitimacy.

In measuring the performance of strategic alliances and networks, subjective measures include: a. Market performance. b. Stability. c. A and B above. d. The level of managers' satisfaction. e. Longevity.

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

Emerging trends concerning formal government policies on entry mode requirements include: a. More liberal policies. b. Imposing considerable requirements. c. A and B above. d. Welcoming wholly owned subsidiaries. e. Banning joint ventures.

Institution-based considerations regarding organization include: a. Collusion concerns. b. Entry requirements. c. The social pressures to find partners. d. The internalized beliefs in the value of collaboration. e. All of the above.

A friend of yours stated: "I would never want to be dependent on an alliance. I prefer an acquisition so that everything would be under my control." How would you respond?

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.

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

A joint venture can be described as: a. A special case of equity-based alliance. b. A new legally independent entity. c. A "corporate child" given birth by two (or more) parent firms. d. All of the above. e. None of the above.

Which (if any) of the following will not influence the performance of alliances and networks? a. Equity. b. Learning and experience. c. Nationality. d. Relational capabilities. e. All can have an influence.

Possible ways to minimize the threat of opportunism include swapping critical skills and technologies through credible commitments.

Firms with a high degree of network centrality are likely to be more attractive partners.

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