Question 1

The ad hoc approach to organization allows firms to systematically learn from the experience.

Accepted Answer

A) True 
 B)False  False

Question 2

A lower level of ____contribution may indicate a firm's relative lack of commitment:
a. Equity
b. Learning and experience
c. Nationality
d. Relational capabilities
e. All of the above

Accepted Answer

Equity

Question 3

From the view of industry structure, in oligopolistic industries, there are an above average number of available players as potential partners.

Accepted Answer

A) True 
 B)False  False

Question 4

The strategic choice concerning whether to form cooperative interfirm relationships or to rely on pure market transactions or M&As to grow the firm is part of:
a. Stage One.
b. Stage Two.
c. Stage Three.
d. Stage Four.
e. Stage Five.

Accepted Answer

The answer of The strategic choice concerning whether to form...

Question 5

The term "strategic networks" is derived from the term "social networks" highlighting the social aspects of interfirm relationships.

Accepted Answer

A) True 
 B)False

Question 6

Strategic alliances involve:
a. Voluntary agreements between firms.
b. Compromises between short-term transactions and long-term solutions.
c. Contracts.
d. Equity-based arrangements.
e. All of the above.

Accepted Answer

The answer of Strategic alliances involve:
a. Voluntary agreements between firms.
b....

Question 7

What can be done to maintain a successful alliance among global firms?

Accepted Answer

The answer of What can be done to maintain a...

Question 8

A firm would prefer equity relationships if it fears that its intellectual property may be expropriated by partners.

Accepted Answer

A) True 
 B)False

Question 9

In comparing M&As with alliances and networks, which of the following is not correct?
a. M&As are costly.
b. M&As have significant transaction costs.
c. Many M&As end up destroying value.
d. Alliances and networks preclude future upgrading into possible M&As.
e. Alliances and networks can be considered as a flexible intermediate solution.

Accepted Answer

The answer of In comparing M&As with alliances and networks,...

Question 10

The first concern in determining whether a relationship should be based on contract or equity is:
a. The kind of resources and capabilities that are shared.
b. Direct monitoring and control.
c. Real options.
d. Institutional constraints.
e. None of the above.

Accepted Answer

The answer of The first concern in determining whether a...

Question 11

The more tacit the resources and capabilities are, the less likely firms will prefer equity involvement in establishing relationships.

Accepted Answer

A) True 
 B)False

Question 12

How can an organizational alliance be "win-win?" How can the concept of "cooperative specialization" help?

Accepted Answer

The answer of How can an organizational alliance be "win-win?"...

Question 13

Weak ties in organizational relationships:
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. A through C above.
e. Are less costly to maintain.

Accepted Answer

The answer of Weak ties in organizational relationships:
a. Are more...

Question 14

Contractual alliances include all of the following except:
a. Co-marketing.
b. Research and development (R&D) contracts.
c. Cross-shareholding.
d. Turnkey projects.
e. Licensing/franchising.

Accepted Answer

The answer of Contractual alliances include all of the following...

Question 15

An increase in the experience of one partner may bring instability into the relationship as it reduces the need to rely on the other partner.

Accepted Answer

A) True 
 B)False

Question 16

As a type of relationship tie, exploitation refers to such things as:
a. Selfishness.
b. Choice.
c. Efficiency.
d. Execution.
e. B through D above.

Accepted Answer

The answer of As a type of relationship tie, exploitation...

Question 17

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 18

Cooperation between rivals is usually suspected of being:
a. Tacit collusion.
b. Explicit collusion.
c. Socialism.
d. All of the above.
e. None of the above.

Accepted Answer

The answer of Cooperation between rivals is usually suspected of...

Question 19

As each firm is likely to have multiple interfirm relationships, it is important to not manage the relationships as a corporate portfolio.

Accepted Answer

A) True 
 B)False

Question 20

Shown in Table 7.4, alliances, which tend to be loosely coordinated among partners, do not work well in a setting that requires a high degree of interdependence. Such a setting would call for acquisitions. Alliances work well when the ratio of soft to hard assets is relatively high (such as a heavy concentration of tacit knowledge), whereas acquisitions may be preferred when such a ratio is low. Alliances create value primarily by combining complementary resources, whereas acquisitions derive most of their value by eliminating redundant resources. Finally, consistent with real options thinking,?alliances are more suitable under conditions of uncertainty, and acquisitions are more preferred when the level of uncertainty is low.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 7-3; Bloom's: Analysis; Difficulty: Moderate
-What are the limitations in trying to clearly identify rights and expectations for alliances and acquisitions among global corporations?

Accepted Answer

The answer of Shown in Table 7.4, alliances, which tend...

Exam 7: Strategic Alliances and Networks

The ad hoc approach to organization allows firms to systematically learn from the experience.

A lower level of ____contribution may indicate a firm's relative lack of commitment: a. Equity b. Learning and experience c. Nationality d. Relational capabilities e. All of the above

From the view of industry structure, in oligopolistic industries, there are an above average number of available players as potential partners.

The strategic choice concerning whether to form cooperative interfirm relationships or to rely on pure market transactions or M&As to grow the firm is part of: a. Stage One. b. Stage Two. c. Stage Three. d. Stage Four. e. Stage Five.

The term "strategic networks" is derived from the term "social networks" highlighting the social aspects of interfirm relationships.

Strategic alliances involve: a. Voluntary agreements between firms. b. Compromises between short-term transactions and long-term solutions. c. Contracts. d. Equity-based arrangements. e. All of the above.

What can be done to maintain a successful alliance among global firms?

A firm would prefer equity relationships if it fears that its intellectual property may be expropriated by partners.

The first concern in determining whether a relationship should be based on contract or equity is: a. The kind of resources and capabilities that are shared. b. Direct monitoring and control. c. Real options. d. Institutional constraints. e. None of the above.

The more tacit the resources and capabilities are, the less likely firms will prefer equity involvement in establishing relationships.

How can an organizational alliance be "win-win?" How can the concept of "cooperative specialization" help?

Weak ties in organizational relationships: 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. A through C above. e. Are less costly to maintain.

Contractual alliances include all of the following except: a. Co-marketing. b. Research and development (R&D) contracts. c. Cross-shareholding. d. Turnkey projects. e. Licensing/franchising.

An increase in the experience of one partner may bring instability into the relationship as it reduces the need to rely on the other partner.

As a type of relationship tie, exploitation refers to such things as: a. Selfishness. b. Choice. c. Efficiency. d. Execution. e. B through D above.

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

Cooperation between rivals is usually suspected of being: a. Tacit collusion. b. Explicit collusion. c. Socialism. d. All of the above. e. None of the above.

As each firm is likely to have multiple interfirm relationships, it is important to not manage the relationships as a corporate portfolio.