Cross border collaboration
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Cross border collaboration l.jpg

Cross-Border Collaboration

Managing across Corporate Boundaries

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The Bigger, the Better


  • Companies desire multi-dimensionality

  • Expanding internationally allows bigger business

  • Must be able to manage assets and resources

  • Costs and risks associated with managing internationally

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Roles of Management


  • Protect profits from competitors or bargain power

  • Strong control over firm’s activities


  • Develop interdependent and integrated network within company

  • External relationships with other firms, customers,etc.

    • Caused by rising costs, shortened product life, barriers to entry

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Friendly Competition?

  • Strategic Alliances

  • Companies that were once strict competitors have now allied

  • AT&T and Toshiba

  • Traditional alliance

    • MNE in industrialized corporation joint ventures with junior local partner in less-developed country

  • New alliances can be between two industrialized countries

  • Motivation for Strategic Alliances are technology exchange, global competition, industry convergence, economies of scale, and alliances as alternative to merger

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    Lomptit raise the scale of activity or rate of learning bloc onigea

    • Form alliances to compete with other international companies of similar size

    • Evens out playing field

    • Symbian alliance of psion, Eericsson, Nokia, Matsushita, and Motorola created as response to Microsoft’s entry into PDA market.

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    • StarAlliance raise the scale of activity or rate of learning and OneWorld are airline alliances formed to avoid merging into one company

    • Created because rules against foreign ownership

      • When rules lifted, mergers are created

      • Alliances like Concert and Unisource created Worldcom, France Telecom and Deutsche Telekom

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    ??? raise the scale of activity or rate of learning

    • Speeds up communication

    • Breaks boundaries between industries

    • Increases R&D technology

    • IT, electronics, pharmaceuticals,, specialty chemicals

      • Material supplies team up with auto companies to transfer and adapt to market

        • GEC trasferred Ford Xenoy bumper technology from Europe to U.S.

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    Era of Alliance “Euphoria” raise the scale of activity or rate of learning

    • 1980s fueled concepts of triad power and stick-to-your-knitting

    • Triad power emphasized developing significant positions in U.S., western Europe, and Japan

    • Focus investments, efforts, and attention on only those tasks they have significant competitive advantage

      • Outsource or use alliances for other tasks

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    Risks of Competitive Collaboration raise the scale of activity or rate of learning

    • Assymetry

    • SonyEricsson

      • Risk could be that one of the partners will learn and internalize other’s skill while protecting its own

    • Ajinomoto Japanese food giant allied with General Foods

    • Also capturing investment initiative to use the partnership to erode other’s position

    • Possibility that alliance breaks, one partner is made stronger

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    Strategic and Organizational Complexity raise the scale of activity or rate of learning

    • International partnerships represent a mix of different economic, political, social and cultural systems

    • Creates organizational challenge

    • Xerox and Fuji Xerox (Japan)

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    Building Cooperative Ventures raise the scale of activity or rate of learning

    • Partner Selection: Strategic and Organizational Analysis

      • Availability of partner

      • Tangible assets

      • Time and distance

      • Strategic capabilities

      • Ongoing process. “Thrill of the Chase”

        • People are different after the chase is over

      • Strategic capabilities

        • Simplicity and Flexibility

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    Managing Cooperative Ventures raise the scale of activity or rate of learning

    • Managing the Boundary

      • Start with limited agreement?

      • Always easier to expand

    • Managing Knowledge

      • Must prevent outflow of any info or knowledge they don’t want partners to know

      • InterfaceManagers

        • Well versed in organizational processes

        • Personal credibility

  • Governing Structure

    • If partners are equal, hard to achieve anything

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    Conclusion raise the scale of activity or rate of learning

    • Alliances don’t have to be permanent

    • Flexibility is important

    • Always learn