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ALLIANCES, PARTNERING AND OUTSOURCING

ALLIANCES, PARTNERING AND OUTSOURCING. DEFINITIONS ALLIANCES AND COMPETITION. ALLIANCES: DEFINITION. Association to further common interests Firms remain independent, not M&A’s Partners share control Both contribute at least one strategic resource (or product) on a continuous basis.

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ALLIANCES, PARTNERING AND OUTSOURCING

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  1. ALLIANCES, PARTNERING AND OUTSOURCING DEFINITIONS ALLIANCES AND COMPETITION

  2. ALLIANCES: DEFINITION • Association to further common interests • Firms remain independent, not M&A’s • Partners share control • Both contribute at least one strategic resource (or product) on a continuous basis

  3. ALLIANCE: A POSITIVE DEFINITION • Commitment to a mutually stimulating relationship,improved upon over time for increasing benefits to both parties • Respond to unilateral commitment (hostage posting)by bilateral commitment (mutual hostages): JASIbetween KASAI and BANTING

  4. DUAL PROCESS • Value creation : Together • Value extraction : For each Cooperation Competition

  5. ALLIANCES AND COMPETITION • The neo-classical view from economics • The challenges from behavioral and institutional economists: H. Simon, Akerlof, Coase, Williamson • The view from sociology: Simmel (1923 ,1950), DiMaggio & Powell(1983), Granovetter(1985), Gulati(2007) • The view from political science: North (1990)

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