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Strategic Alliances In Technological Innovations Essay

4755 words - 19 pages

STRATEGIC ALLIANCES IN TECHNOLOGICAL INNOVATIONS1.0 INTRODUCTION31.1 BACK GROUND OF THE STUDY31.2 PURPOSE41.3 SCOPE OF THE STUDY42.0 TYPES OF STRATEGIC ALLIANCES52.1 JOINT VENTURES52.2 COLLABORATION62.3 MERGERS AND ACQUISITIONS. (M&A)72.4 R&D CONSORTIA.83.0 STRATEGIC ROLES OF STRATEGIC ALLIANCES83.1 TECHNOLOGICAL SOPHISTICATION93.2 TRAINING93.3 MARKET ENTRY.93.4 SHARING RISKS AND EXPENSES.93.5 SYNERGISTIC EFFECTS OF SHARED KNOWLEDGE AND EXPERTISE.103.6 GAINING COMPETITIVE ADVANTAGE.103.7 REDUCE POLITICAL RISKS WHEN ENTERING NEW MARKETS.104.0 DRAW BACKS OF STRATEGIC ALLIANCES114.1 COMPETING INTEREST.114.2 DEDICATION OF RESOURCES.124.3 ATTENDING TO GOVERNANCE125.0 STRATEGIC ALLIANCE PROCESS IN TECHNOLOGIVAL INNOVATIONS135.1 STRATEGY DEVELOPMENT145.2 PARTNER ASSESSMENT145.3 CONTRACT NEGOTIATION145.4 MANAGEMENT AND EVALUATION OF THE ALLIANCE155.5 ALLIANCE TERMINATION155.6 ALLIANCE PORTFOLIO156.0 THEORIES TO ANALYSE STRATEGIC ALLIANCES.156.1 GAME THEORY166.2 STRATEGIC BEHAVIORAL THEORY166.3 TRANSACTIONAL COST ECONOMIES (WILLIAMSON, 1985)167.0 ANALYSIS AND CONCLUSION187.1 ANALYSIS187.2 CONCLUSION18REFERENCES191.0 INTRODUCTION1.1 BACK GROUND OF THE STUDYStrategic Alliances is defined as a formal relationship formed between two or more parties in order to pursue a set of agreed goals or to meet a critical business need while they remain independent firms. It can take many forms in terms of exclusive supply arrangements, joint research and development, purchasing or marketing among many others Kolasky (1997).According to Dutta Weiss (1997), technology innovativeness is defined as "the extend to which a firm creates technologies which are technologically significant." The innovative performance of a company and its innovative output are what determine the innovativeness of a firm. The innovativeness of a product can be looked at in terms of its newness to the market or newness to the firm (Katobe &Swan 1995).Innovation is about creating and implementing effective ideas that achieve either a firm or market needs (Soderlund 2006). The faster the innovation the better as the world is very dynamic and the turbulence levels are high.Strategic alliances have become increasing popular over the years. Many companies now have more that one strategic partner an example being IBM who has over 10,000 alliances Kolasky, Jr. (1997).The study on Strategic Alliances in Technological Innovations is important as an important source contributing to the innovative capabilities of companies. It brings about potential action for sharing the risk related to product development as well as expansion of the knowledge base by various companies thus giving them a better strategic edge in the industry.There are many factors that have contributed to the greater need for cooperation;Globalization;Organizations are no longer competing locally for market share but are now looking at global expansion. To compete globally firms require a much larger scope of operations. Local...

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