By John Child

ISBN-10: 0199266255

ISBN-13: 9780199266258

Strategic alliances are more and more universal, as many companies glance in the direction of numerous partnering preparations. This moment variation of options of Cooperation extends the 1st edition's transparent and accomplished survey of strategic alliances. featuring diverse disciplinary views (economics, process, association conception) and diverse examples from the company international. The textual content has been completely revised and up-to-date, taking account of latest theoretical versions, and its insurance of case reports has been prolonged. it is going to be perfect for enterprise scholars and bosses alike wishing to appreciate the demanding situations of coping with alliances.

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Additional info for Cooperative Strategy: Managing Alliances, Networks, and Joint Ventures

Sample text

8 Increasing-returns theory Economic theory has traditionally operated on the assumption that after a certain point there are diminishing returns to factor inputs. Such an assumption leads to the predictability of an ultimate equilibrium in markets and to the possibility of ‘efficiency’ in factor allocation, if contingent distortions can be eliminated from markets. Economists such as Arthur (1989), however, have observed that increasingly, in knowledge-based industries in particular, the phenomenon of continuing increasing returns has manifested itself, a phenomenon of particular significance to the economic benefits of networks of alliances.

3–38. Zajac, E. and Olsen, C. (1993). ‘From Transaction Cost to Transactional Value Analysis: Implications for the Study of Interorganizational Strategies’, Journal of Management Studies, 30: 131–45. 1 What this chapter covers This chapter describes the contributions of managerial and organizational theories to the understanding of cooperative strategy. It begins with strategic management theory (SMT), which draws attention to the motives for forming alliances, the selection of partners to achieve compatibility between their goals, and the need to achieve integration between partner cultures and systems.

10 Questions for discussion 1. To what extent can a single dominant theory of cooperation be developed? 2. Is transaction costs or transaction value theory the key to appropriate corporate governance systems? 3. As in all strategy, the market theory is contrasted with the resource-based one. Is there any difference in cooperative strategy theory? 4. How can one put a value on a real option in this area? 5. Can increasing returns theory be extended outside knowledge-based industries? References Amit, R.

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