Black-Box Protection of Core Competencies in Strategic Alliances

2000 ◽  
Vol 6 (2) ◽  
pp. 32-43 ◽  
Author(s):  
Michael Milgate
Keyword(s):  
Strategic Alliances ◽  
Strategic Alliance ◽  
Joint Venture ◽  
Core Competencies ◽  
Black Box ◽  
Advanced Technology ◽  
Proprietary Information ◽  
Know How ◽  
Sensitive Knowledge ◽  
Cooperative Venture

AbstractThis article presents a conceptual framework that participants in cooperative ventures may use to protect core competencies and proprietary information, while allowing the cooperative venture to benefit from these. While strategic alliances, in various forms, are becoming more common (Beamish and Delios, 1997), a potentially issue that often remains unresolved is how to protect your core competencies, while still cooperating openly with your partner, particularly when advanced technology is involved. It can be difficult for partners in an alliance to cooperate and openly share strategic know-how. Cooperation and openness are necessary, however, if a joint venture is to succeed. Since the success of any strategic alliance is based on cooperation, trust and an open sharing of competencies, potentially sensitive knowledge might be exposed through the joint venture. This is why many executives regard strategic alliances with reservation (Lorenz, 1992). They resist giving away core strategic competencies that might be misused in other contexts.

Black-Box Protection of Core Competencies in Strategic Alliances

2000 ◽  
Vol 6 (2) ◽  
pp. 32-43 ◽  
Author(s):  
Michael Milgate
Keyword(s):  
Strategic Alliances ◽  
Strategic Alliance ◽  
Joint Venture ◽  
Core Competencies ◽  
Black Box ◽  
Advanced Technology ◽  
Proprietary Information ◽  
Know How ◽  
Sensitive Knowledge ◽  
Cooperative Venture

AbstractThis article presents a conceptual framework that participants in cooperative ventures may use to protect core competencies and proprietary information, while allowing the cooperative venture to benefit from these. While strategic alliances, in various forms, are becoming more common (Beamish and Delios, 1997), a potentially issue that often remains unresolved is how to protect your core competencies, while still cooperating openly with your partner, particularly when advanced technology is involved. It can be difficult for partners in an alliance to cooperate and openly share strategic know-how. Cooperation and openness are necessary, however, if a joint venture is to succeed. Since the success of any strategic alliance is based on cooperation, trust and an open sharing of competencies, potentially sensitive knowledge might be exposed through the joint venture. This is why many executives regard strategic alliances with reservation (Lorenz, 1992). They resist giving away core strategic competencies that might be misused in other contexts.

scholarly journals Innovation Capabilities and Performance of Malaysian Agricultural SMEs: The Moderating Role of Strategic Alliance

2021 ◽  
Vol 22 (2) ◽  
pp. 675-695
Author(s):  
Nurul Izni Kamalrulzaman ◽  
Azlinzuraini Ahmad ◽  
Akmalia Mohamad Ariff ◽  
Mohd Shaladdin Muda
Keyword(s):  
Strategic Alliances ◽  
Resource Sharing ◽  
Strategic Alliance ◽  
Joint Venture ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
World Market ◽  
Market Demand ◽  
The Relationship

Small and Medium Enterprises (SMEs) in the agriculture sector in Malaysia are still seen to contribute only a small portion towards Gross Domestic Product (GDP) and the total number of the national workforce. As for agricultural SMEs, innovation activities are needed to produce quality agricultural-based products to meet the increasing of Malaysia and world market demand. Nevertheless, innovation among agricultural SMEs is still less encouraging. Hence, this study aims to investigate the effect of innovation capabilities towards performance of agricultural SMEs in Malaysia and determine the role of strategic alliance as a moderator in influencing the performance of agricultural SMEs. The conceptual framework of innovation capabilities is based on Resource-Based View Theory and Schumpeter Innovation Theory that considers strategic alliance will positively affect the relationship between innovation capabilities and SME performance. A total of 136 respondents from Agricultural SMEs were used for data analysis process using SmartPLS 3.0 software. The results show that innovation capabilities have a positive impact on the performance of SMEs, while strategic alliance does not affect the relationship between innovation capabilities and agricultural SME performance. Although strategic alliance has insignificant effect, this might be resulted from the emphasis of this study as it defined strategic alliances as acquisitions of companies. For agricultural SMEs in Malaysia, entrepreneurs need to look at an alliance from a positive perspective by looking it as a joint venture process in resource sharing that will benefit the enterprises, thus it is not only meant acquisition. The implication of this study is expected to contribute and enhance the role of innovation capabilities among entrepreneurs and strategic alliances in the Malaysian agricultural SMEs.

scholarly journals Alliance formation: A Study of the Malaysian Automobile Supporting Industry

2010 ◽  
Vol 12 (3) ◽  
pp. 355
Author(s):  
Ahmad Bashawir Abdul Ghani ◽  
Malcolm Tull
Keyword(s):  
Automobile Industry ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Joint Venture ◽  
Foreign Market ◽  
Alliance Formation ◽  
Mode Of Entry ◽  
Parent Firm ◽  
Using Data ◽  
Set Up

Competition  in  global  industries  is  shifting  increasingly from  inter-firm  rivalry  to  rivalry  between  networks  of  firms. Strategies of individual  firms are thus contingent on the degree of interdependence that exists between them and the parent firm in the network. The present study examines the effect of network affiliation on a member firm’s decision to enter a foreign market and  international  strategic  alliance  formation.  Affiliate  firms have two options available to them: (1) enter into a competitive strategic alliance with a competitor or (2) enter into a symbioticstrategic alliance with  the parent firm of the network organiza-tion.  We tested  this assertion  using  data  from archival  sources on  sixty-five  Japanese  automobile  suppliers  that  had  set  up strategic  alliances  in  Malaysia  and  that  belonged  to  various inter-organizational  networks.  Results  indicate  that  when  affili-ate firms are dependent on the parent firm, they prefer to form symbiotic  strategic  alliances.  Conversely,  affiliate  firms  prefer competitive  strategic  alliances  with  competitors  when  they  are not  dependent  on  the  parent  firm. ALLIANCE  FORMATIONA Study of the Malaysian Automobile Supporting IndustryKeywords: automobile industry; joint venture; mode of entry; networks; strategic alliances

ENTREPRENEURSHIP CULTURE AND TECHNOLOGICAL STRATEGIC ALLIANCES BETWEEN COMPETITORS: FROM SAVING TRANSACTION COSTS TO COMMON KNOWLEDGE DYNAMICS

2000 ◽  
Vol 08 (03) ◽  
pp. 271-290
Author(s):  
BOUALEM ALIOUAT
Keyword(s):  
Strategic Alliances ◽  
Joint Venture ◽  
Cultural Practices ◽  
Common Knowledge ◽  
Core Competencies ◽  
Cultural Dimension ◽  
Common Structure ◽  
Top Managers ◽  
Knowledge Dynamics ◽  
Technological Alliances

By combining the ideas of entrepreneurship and partnership, this paper deals with the core competencies (essentially through their cultural dimension) that firms have to develop with technological innovation in view. We are more particularly concerned with entrepreneurs who develop their business through strategic alliances with competitors. By analyzing managerial and cultural practices this paper proposes frameworks of core competencies which contribute to optimizing these alliances. We have carried out an empirical analysis of 60 technological alliances between firms. This study is based on interviews with top managers and entrepreneurs. The results show a scope of two different cases which depend on the creation or not of a common structure (joint venture or joint R&D structure). In the case of non-determinant technological projects, we have proposed flexible contracts. In opposite cases, we propose frameworks of common structures, which favor common knowledge as core competencies in alliances.

scholarly journals Does Strategic Alliance Matter In Managing Innovation In China?

2014 ◽  
Vol 30 (3) ◽  
pp. 793 ◽  
Author(s):  
Li (Isabella) Liu ◽  
Sajjad M. Jasimuddin ◽  
David Faulkner
Keyword(s):  
Strategic Alliances ◽  
Success Factors ◽  
Strategic Alliance ◽  
Joint Venture ◽  
Easy Access ◽  
International Joint Venture ◽  
Foreign Technology ◽  
Technology Infrastructure ◽  
Key Success Factors ◽  
Innovation Activities

<p>Innovation is the route to competitive advantage for a firm. In this regard, strategic alliances, particularly international joint venture (IJV), is an effective vehicle for creating innovation capabilities. This paper attempts to explore innovation activities in IJVs between Chinese and Western companies. China is currently largely an OEM country that supplies the whole world with a wide variety of products. However it still lacks a higher level of innovation. The paper reports a qualitative study conducted at two Sino-Western IJVs about how IJVs can help Chinese companies to become innovative. China has easy access to foreign technology, but is weak in its domestic clustering of technology infrastructure. Sino-Western joint ventures are found useful in creating transferable innovation in China. The paper suggests key success factors for creating innovation capabilities through IJV formation.</p>

Encountering the difficulties of Entrepreneurship: Lesson from Ramayana

2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Dinesh Kumar ◽  
Dr. Jyotirmaya Mahapatra
Keyword(s):  
Goal Orientation ◽  
Strategic Alliances ◽  
Role Model ◽  
Strategic Alliance ◽  
Religious Philosophy ◽  
The People ◽  
Social Cause ◽  
Small Shop ◽  
Definition Of ◽  
Holistic Vision

Scholars could not come to unanimity on definition of entrepreneurship but agreement exist that an entrepreneur should be a natural leader having thorough understanding of the business and visualize the changes and take calculated risk. Skills and abilities required for entrepreneurship are so great and numerous that it is difficult to find persons having entrepreneurship trailts. Most of the entrepreneurs either fail at early stages or unable to expand the business beyond a small shop. A successful entrepreneur in addition to being a visionary and possessing qualities like innovativeness, resilience, perseverance etc. should have the honest belief in self and unflinching faith in ‘Karma’ like ‘Rama of Ramayana’ so that he can face the challenges and pursue the goal with limited resources. Religious philosophy helps the people in developing traits useful in life. Holy books like the Ramayana not just deals with spirituality but management principles hidden in it help an individual to develop entrepreneurship skills and role effectiveness. Primarily, Ramayana is a story and pursuit of the Ramayana does not automatically get translated into entrepreneurship qualities as background was quite different than today’s business scenario. However, Rama, a role-model of Gyan-yog and Karm-yog, can be compared with an entrepreneur who started from scraps like entrepreneur but by linking of his goals with social values and following highest standard of ethics, he could make strategic alliances with Sugriva and Vibheeshana and created Ram and Company and inducted less skilled, less equipped but well dedicated Vanar in army and fought against Ravana (the greatest demon) having well equipped army, to make the earth free from devils and liberate Sita and save the dignity of women (social cause). Principles hidden in the Ramayana show holistic vision and, if followed, by an entrepreneur will help him to establish a successful business model.This article is a modest attempt of exploring attributes of Ram and principles/ methodology adopted by him in his fight against Ravana understood through interpretation of stanzas/ verses mentioned in Ramcharit Manas and correlate them with formation of strategy, goal orientation, strategic alliance, change management etc. ideally required by entrepreneurs to establish and grow his business in modern day competitive scenario.

Measuring intellectual capital in a firm belonging to a strategic alliance

2015 ◽  
Vol 16 (1) ◽  
pp. 174-198 ◽  
Author(s):  
Stefania Veltri ◽  
Andrea Venturelli ◽  
Giovanni Mastroleo
Keyword(s):  
Decision Making ◽  
Expert System ◽  
Intellectual Capital ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Empirical Work ◽  
Organizational Level ◽  
Decision Making Process ◽  
Content Type ◽  
Scant Attention

Purpose – The purpose of this paper is to propose a method to measure intellectual capital (IC) in firms involved in strategic alliances, an area that has received scant attention in the literature, as existing research is focused mainly on organizational level mainly and increasingly on macro-level unit such as regions or nations. There are very few works at the meso-level (i.e. alliances, clusters), and the paper aims to fill this void, by providing researchers and practitioners with a tool capable of combining measurement and management aims, developed at organizational level with the active participation of the researchers. Design/methodology/approach – The method of analysis is based on a model formalized through a fuzzy expert system (FES). The FES are able to merge the capabilities of an expert system to simulate the decision-making process with the vagueness typical of human reasoning, maintaining the ability to still have a numeric value as a response. Its construction requires the participation of experts, whose knowledge of the problem is accumulated in the form of blocks of rules. These features make it possible to formalize the decision-making process related to the IC valuation, handling qualitative and quantitative variables, and exploring the cognitive mechanisms underlying this process. Findings – The outcome of the application is a system designed to measure the intangible performance deriving from participation in a strategic alliance using FES. This study contributes to the broadening of the research community’s understanding regarding the alternative measurement of IC created within strategic alliances. Research limitations/implications – To the best of the authors’ knowledge, IC literature lacks methods expressly designed to measure the incremental value of IC originating from collaboration among firms. From a measurement perspective, the results may be regarded as valuable proof that IC performance within strategic alliances can be measured quantitatively. Practical implications – On the management side, the possibility of retracing the determinants of different IC intermediate indicators composing the final IC index allows strategic alliances managers to use this information for decision-making purposes. Originality/value – To the best of the authors’ knowledge this is the first study applying FES to measure IC in a firm belonging to a strategic alliance. In the authors’ opinion, fuzzy logic methodology, recently applied in empirical work designed to evaluate IC, represents a reliable methodology because of the “fuzzy” nature of IC.

COMMENTARY: Beyond the Black Box Revisited: Algorithmic Trading and TCA Analysis Using Excel

2018 ◽  
Keyword(s):  
Decision Process ◽  
Investment Decision ◽  
Black Box ◽  
Third Party ◽  
Algorithmic Trading ◽  
Impact Model ◽  
Market Impact ◽  
Proprietary Information ◽  
Analysis Techniques ◽  
Trading Decisions

In this paper we revisit techniques from “Creating Dynamic Pre-Trade Models: Beyond the Black Box” (Kissell, 2011) which was awarded The Journal of Trading’s Best Paper of the Year Award in 2011. We provide investors a pre-trade of pre-trade modeling technique that can be used to decipher broker and vendor models, and to calibrate a customized investor specific market impact model. We also provide a suite of Excel TCA Add-In functions that can incorporate investor specific market impact parameters and allow investors to perform TCA analysis on their own desktops within Excel, and with the added level of security and comfort that their investment decision process will not be reverse engineered because they do not need to upload or transmit any of their proprietary information and valuable trade information to a third-party website or API for analysis. Techniques in this paper enable investors to create their own customized TCA analyses within Excel to assist with both trading decisions and portfolio analysis and optimization.

scholarly journals Network positions: Strategic Alliance in the Tobacco Industry in Nicaragua

2014 ◽  
pp. 17-20
Author(s):  
Reynaldo Gómez García
Keyword(s):  
Central Bank ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Tobacco Industry

This paper is based on the theory of the organizations as a network. I study the strategic alliances in the tobacco industry in Nicaragua. The study is more theoretical than empirical. I work with approaches in this field and any data of Central Bank of Nicaragua. My objective is to demonstrate that the firms in the tobacco industry are prone to enter in strategic alliances. DOI: http://dx.doi.org/10.5377/farem.v0i10.1611 Revista Científica de FAREM-Estelí No.10 2014: 17-26

Aliansi Strategis dan Kinerja Perusahaan: Perspektif Teori Institusional

2020 ◽  
Vol 1 (2) ◽  
pp. 83-90
Author(s):  
Rebi Fara Handika
Keyword(s):  
Firm Performance ◽  
Institutional Theory ◽  
Empirical Research ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Point Of View ◽  
Theory Point ◽  
And Performance ◽  
The Relationship

Abstract   This paper discussed the company's motive to join a strategic alliance from the institutional theory point of view. The theory views that strategic alliances are considered as the medium to acquire legitimation from the environment. Such legitimation then improves the company’s competitive positions and performance. Further, we propose the framework to discuss the relationship between strategic alliances and a company’s performance. The paper proceeds as follows: in the next section, we discuss the institutional theory, the strategic alliance, and firm performance. Afterward, we develop the propositions and discuss the implications for future empirical research.   Abstrak   Artikel ini membahas motif perusahaan untuk bergabung dengan aliansi strategis dari sudut pandang teori institusional. Teori ini memandang bahwa aliansi strategis dianggap sebagai media untuk memperoleh legitimasi dari lingkungan. Legitimasi tersebut kemudian dipercayai akan meningkatkan posisi kompetitif dan kinerja perusahaan. Selanjutnya, kami mengusulkan framework untuk membahas hubungan antara aliansi strategis dan kinerja perusahaan. Artikel ini akan dilanjutkan sebagai berikut: pada bagian berikutnya, kita membahas teori institusional, aliansi strategis, dan kinerja perusahaan. Setelah itu, kami mengembangkan proposisi dan membahas implikasi untuk penelitian empiris di masa depan.

Sign in / Sign up

Export Citation Format

Share Document