Collaboration Influencing Success Several factors will influence whether a firm
ID: 421593 • Letter: C
Question
Collaboration Influencing Success
Several factors will influence whether a firm chooses to collaborate on an innovation. Some of the most important factors include whether the firm (or a potential partner) has the required capabilities or other resources; the degree to which collaboration would make proprietary technologies vulnerable to expropriation by a potential competitor; the importance the firm places on controlling the development process and any innovation produced; and, the role of the development project in building the firm's own capabilities or permitting it to access another firm's capabilities. Intended Outcomes: Determine advantages and disadvantages of collaboration during project development. Identify factors that are crucial to a successful strategic collaboration. Recognize qualitative and quantitative methods of assessment for projects. Evaluate strategic approaches such as strategic alliance, joint venture, and licensing outsources.
Respond to the following Questions:
What are some advantages and disadvantages of collaborating on a development project? Give an example.
How does the mode of collaboration influence the success of collaboration? Consider strategic alliance, joint venture, outsourcing, and collective research organization.
Explanation / Answer
Q1) Below are the advantages and disadvantages of collaborating on a development project -
Advantages
1. Getting more innovative and creative ideas from the other parties involved due to the diverse set of individuals from both the firms.
2. Eases financial burden if the investment on the developmental project is shared between the firms.
3. Firms can take advantage of the resources and technology of the other firms ensuring effective collaboration.
Disadvantages
1. Control of the project will be conflicting as both the parties try to overpower the other.
2. Too much reliability on each other will lead to lack of complete ownership of the project.
3. Increase in the conflicts due to differences in opinions among the employees in both the firms.
Q2) Below is how mode of collaboration influences the success of collaboration -
1. Strategic alliance - In this mode of collaboration, the firms form a partnership to achieve common strategic objectives which can include increase of sales revenues in a certain location for a certain product etc. The firms work as independent organizations but dedicate resources to achieve the objectives. Understanding of the objectives and the strategies bulit to achieve them is critical for its success.
2. Joint venture - In this mode of collaboration, the firms work together to form a new venture or business by contributing resources, financing the venture and creatng an organizational structure etc.
3. Outsourcing - Outsourcing involves hiring a firm to complete work on business operations of the firm while it concentrates on its core business.This can be considered if the firm doesn't have resources and processes to accomplish the operations.
4. Collective research organization - This is a joint organization where resources are pooled in by multiple companies working on common objectives to work on research projects.