Chapter 9 - Strategic Alliances

A(n) ________ exists whenever two or more independent organizations cooperate in the development, manufacture, or sale of products or services

A ________ is a form of nonequity alliance that exists when one firm allows another to use its brand name to sell its products.

In a ________, cooperating firms create a legally independent firm in which they invest and from which they share any profits that are created.

Strategic alliances can create economic value through helping firms improve their current operations by

When both parties to an alliance are seeking to learn something from that alliance, a ________ can evolve.

Network industries are characterized by

A firm's ability to learn is known as its

________ exist(s) when firms directly communicate with each other to coordinate their levels of production and/or their prices.

________ exist(s) when firms coordinate their production and pricing decisions not by directly communicating with each other but by exchanging signals with other firms about their intent to cooperate.

Strategic alliances are particularly valuable in facilitating market entry and exit when the value of market entry or exit is

Although joint ventures between firms in the same industry ________ collusive implications, research has shown that these kinds of joint ventures are ________.

As long as the cost of ________ to enter a new industry is less than the cost of ________, an alliance can be a valuable strategic opportunity.

Consistent with a real options perspective, firms in new and uncertain environments are likely to

If TeleCo were to enter into a strategic alliance with a partner that promised it could deliver a high quality wireless infrastructure when in fact the potential partner had neither the skills nor abilities to provide this infrastructure, TeleCo could be said to be impacted by

Adverse selection in a strategic alliance is likely only when

In general, the ________ tangible the resources and capabilities that are to be brought to a strategy alliance, the ________ costly it will be to estimate their value before an alliance is created, and the ________ likely it is that adverse selection will occur.

________ occurs when partners in an alliance possess high-quality resources and capabilities of significant value in an alliance but fail to make those resources and capabilities available to alliance partners.

Often both parties in a failed alliance accuse each other of

When one firm makes more transaction-specific investments in a strategic alliance than partner firms make, that firm may be subject to a form of cheating called ________ that occurs when a firm that has not made significant transaction-specific investments demands returns from an alliance that are higher than what the partners agreed to when they created the alliance.

Research suggests that ________ are the type of alliance where existence of transaction-specific investments often leads to holdup problems.

The rarity of strategic alliances

One of the reasons why the benefits that accrue from a particular strategic alliance may be rare is that

Research indicates that the most common reason that alliances fail to meet the expectations of partner firms is

To the extent that a strategic alliance is based on ________ relations, it will make the alliances costly to imitate.

Two possible substitutes for strategic alliances include

Firms ________ when they attempt to develop all the resources and capabilities they need to exploit market opportunities and neutralize market threats by themselves.

Alliances will be preferred to going it alone when

________ theory suggests that under conditions of high uncertainty, firms may be unwilling to commit to a particular course of action by engaging in an exchange with a firm and will choose, instead, the strategic flexibility associated with alliances.

Alliances will be preferred to acquisitions when

An example of a contractual clause that deals with operating issues would be a

All of the following are methods firms can use to reduce the threat of cheating in strategic alliances except

Which of the following is a limitation of the reputational control of cheating in a strategic alliance?

When the probability of cheating in a cooperative relationship is greatest, a(n) ________ is the preferred form of cooperation.

________ may enable partners to explore exchange opportunities that they could not explore if only legal and economic organizing mechanisms were in place.

While it is often the case that there will be important information asymmetries between firms in an alliance, these asymmetries are likely to be ________ when alliances partners come from different countries.

eBay's agreement with the U.S. Postal Service is most accurately classified as a(n)

eBay's agreement with MBNA is most accurately characterized as a(n)

eBay's agreement with the Korean online auction company is best characterized as a(n)

eBay's former agreement with ecorp is best characterized as a(n)

If eBay's agreements with their Korean and Australian partners were intended to increase the number of buyers and sellers and thereby increase the value of eBay's online auction services for every eBay user, this would imply that the online auction industry is an example of a ________ industry.

If eBay entered into the cooperative agreement with its Australian partner for the purpose of testing the attractiveness of the Australian and New Zealand auction industries prior to making a more significant investment in these industries, this would be an example of

If, prior to entering the cooperative agreement with eBay, eBay's Korean partner stated that it had the technological capabilities to facilitate eBay's Korean auction business when, in fact, the Korean company did not have these capabilities, this would be an example of

If eBay's Australian partner agreed to provide marketing and technological skills to help eBay compete in the Australian and New Zealand auction industries but provided skills that were significantly lower than promised, this would be an example of

eBay's agreement with ________ is the most likely to be susceptible to holdup.

Which of the following reasons helps explain why eBay may have preferred to enter into an alliance to enter the Korean online auction industry rather than going it alone?