By Wlodzimierz Sroka
Effective administration is essential to the good fortune of the inter-firm cooperation, and should lessen the chance that's inherently linked to those options. If cooperative technique is to achieve success, managers should have wisdom of things that are meant to be considered in the course of formation and administration of alliance networks. accordingly the most objective of this publication is an comprehensible and easy presentation of the complexity serious about the administration of alliance networks at 3 uncomplicated levels: formation level, functioning level, and post-operational level. The publication includes six chapters, either theoretical and functional. a brand new version for administration of alliance networks, which makes use of assorted tools and instruments, has been built within the paintings. The final a part of the publication concentrates at the administration of alliance networks in a practice-based framework in accordance with the instance of an engineering corporation which has shaped a portfolio of bilateral alliances.
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Additional resources for Management of Alliance Networks: Formation, Functionality, and Post Operational Strategies
The administrative and 1 Alliance Network Structure 35 technical costs associated with the adaptation of new technology can be then divided into more companies. This is particularly important at the beginning, as these costs are the highest at this time. It can therefore be concluded that the larger the network size, the lower the costs of the adaptation of new technologies (Majumdar and Venkataraman 1998). 2 Internal Competition and Cooperation in the Network A characteristic feature of alliance networks is duality, which means simultaneous presence of internal competition and cooperation (Lei 1993).
The greater the use of basic competences and technologies in the alliance portfolio, the stronger the node position (Doz and Hamel 2006: 319–323). Although alliance networks are a relatively new phenomenon on the map of international competition, and companies involved in such projects are constantly learning how to manage them effectively, there are some general determinants as to how to manage such projects: • Effective alliance networks are worth more than the sum of individual alliances. The network has to be managed as a whole, allowing the exploitation of synergies between partners.
Other authors emphasize that the company’s technical environment can have a significant impact on the development of a network among companies and its composition (Madhavan et al. 1998), and compacted networks are not beneficial for companies operating in a turbulent technical environment (Rowley et al. 2000). The company’s position within a network may differ. Basically, its role and importance depend on assets possessed, know-how, patents and market position, etc. An interesting case in point would be the passenger transport industry.