motives for collaborative arrangements:
Uploaded by Jack Jerico on Dec 04, 2008
motives for collaborative arrangements:
a. Gain location-specific assets”Cultural, political, competitive, and economic differences among countries create barriers for companies that want to operate abroad. When they feel ill-equipped to handle these differences, they may seek collaboration with local companies who will help local operations. In other countries, foreign companies may team with local companies to gain operational assets.
b. Overcome legal constraints”Collaboration can be a means of protecting an asset. Many countries provide little de facto protection for foreign property rights such as trademarks, patents, and copyrights unless authorities are prodded consistently. To prevent pirating of these proprietary assets, companies have sometimes made collaborative agreements with local companies, which then monitor that no one else uses the asset locally.
c. Diversify geographically”By operating in a variety of countries, a company can smooth its sales and earnings because business cycles occur at different times within the different countries. Collaborative arrangements offer a faster initial means of entering multiple markets. Moreover, if product conditions favor a diversification rather than a concentration strategy, there are more compelling reasons to establish foreign collaborative arrangement.
d. Minimize exposure in risky environments”One way to minimize loss from foreign political occurrences is to minimize the base of assets located abroad”or share them. A government may be less willing to move against a shared operation for fear of encountering opposition from more than one company, especially if they are from different countries and can potentially elicit support from their home governments. Another way to spread risk is to place operations in a number of different countries.
Collaborative Processes
Working with a group of people allows individuals to come together to express a common interest and strive toward a common goal. Frequently, working in collaborative fashion requires more in-depth and complex social skills than does working individually.
Working in a group requires an individual to put aside their single motivations in order to combine together with the rest of the team to reach the demands and expectations of the group. The skills required to be effective team members are evidently instilled in the youth of today at an early age. As early as grade school, students are encouraged to work in teams to learn the necessary tactics of being a cooperative group member. These students are taught a preemptive notion of the definition of teamwork in the old saying, œa chain is only as strong as its weakest length. Society has taught us that working in...