Question 1

From the perspective of network position, firms located in the center of interfirm networks accumulate less power and influence.

Accepted Answer

A) True 
 B)False

Question 2

In alliance formation, the question of whether to cooperate or not cooperate is essentially answered by whether a firm goes the route of market transactions/acquisitions or forms an alliance.

Accepted Answer

A) True 
 B)False

Question 3

The marriage/divorce metaphor works if the alliance has only two partners, but not if it involves more than two.

Accepted Answer

A) True 
 B)False

Question 4

Why and how might a "real option" be useful in a joint venture?

Accepted Answer

When a joint venture is launched, one of...

Question 5

Successful alliances and networks normally avoid socially complex relations among partners.

Accepted Answer

A) True 
 B)False

Question 6

Higher level shared technology is associated with lower profitability for parent firms.

Accepted Answer

A) True 
 B)False

Question 7

In international alliances, setting up a parallel and reciprocal relationship in the foreign partner's home country may decrease the incentives for both partners to cooperate.

Accepted Answer

A) True 
 B)False

Question 8

Firm X is considering an alliance with Firm A. Which of the following institution-based consideration is most important to Firm X's decision?

Accepted Answer

A)  ​High entry barriers discourage our competitors from making similar alliances.
B)  ​The alliance will create an acceptable level of value for us.
C)   ​Local content requirements are minimal.
D)   ​The opportunity to learn from Firm A is significant.

Question 9

Examples of equity-based alliances include strategic investment.

Accepted Answer

A) True 
 B)False

Question 10

Strong ties between alliance partners are:

Accepted Answer

A)  ​Less costly to maintain than weak ties.
B)  ​Better for exploring new opportunities.
C)   ​The initial foundation of many strategic alliances.
D)   ​Needed for greater flexibility.

Question 11

Stock markets are more likely to respond favorably to companies that engage in alliance activities if the partners:

Accepted Answer

A)  ​Are from countries with no political risk.
B)  ​Have previous alliance experiences.
C)   ​Possess similar resources.
D)   ​Are small in size.

Question 12

In the context of strategic alliances, a constellation is:

Accepted Answer

A)  ​An industry agreement in which firms compete against one another.
B)  ​A two-firm equity-based partnership.
C)   ​A strategic network.
D)   ​All of the above.

Question 13

Which of the following is a subjective factor that affects the performance of alliances and networks?

Accepted Answer

A)  Equity invested.
B)  Learning and experience.
C)   Profitability.
D)   Market share.

Question 14

What are the drawbacks of forming an alliance? How does the learning race become a drawback?

Accepted Answer

​Alliances have a number of drawbacks. F...

Question 15

For equity-based alliances and networks, the nature of shared resources and the degree of tacitness and complexity are:

Accepted Answer

A)  ​Low.
B)  ​Moderate.
C)   ​High.
D)   ​Irrelevant.

Question 16

A firm in an alliance is likely to have other interfirm alliances as well, which makes it important to:

Accepted Answer

A)  ​Close the door to additional alliances.
B)  ​Insist on direct monitoring and control.
C)   ​Manage the relationships as a corporate portfolio.
D)   ​None of the above.

Question 17

To protect against opportunism within an alliance relationship, a firm could minimize the threat by:

Accepted Answer

A)  ​Walling off critical capabilities.
B)  ​Swapping critical capabilities through credible commitments.
C)   ​Holding each other "hostage."
D)   ​All of the above.

Question 18

What is opportunism in the context of alliances, and what can be done to minimize its threat?

Accepted Answer

​Opportunism is defined as self-interest...

Question 19

In regards to strategic alliances and networks, in the traditional industry-based view, firms are dependent players.

Accepted Answer

A) True 
 B)False

Question 20

Weak ties in organizational relationships:

Accepted Answer

A)  Are more trustworthy and are cultivated over a long period of time.
B)  Are associated with exchanging finer-grained information.
C)   Provide an informal, social control mechanism.
D)   Are less costly to maintain.

Exam 7: Making Strategic Alliancee and Networks Work

Which of the following is a subjective factor that affects the performance of alliances and networks?

Correct AnswerverifiedShow Answer

Strong ties between alliance partners are:

Correct AnswerverifiedShow Answer

Stock markets are more likely to respond favorably to companies that engage in alliance activities if the partners:

Correct AnswerverifiedShow Answer

Weak ties in organizational relationships:

Correct AnswerverifiedShow Answer

In international alliances, setting up a parallel and reciprocal relationship in the foreign partner's home country may decrease the incentives for both partners to cooperate.

Correct AnswerverifiedShow Answer

A firm in an alliance is likely to have other interfirm alliances as well, which makes it important to:

Correct AnswerverifiedShow Answer

Examples of equity-based alliances include strategic investment.

Correct AnswerverifiedShow Answer

In the context of strategic alliances, a constellation is:

Correct AnswerverifiedShow Answer

In alliance formation, the question of whether to cooperate or not cooperate is essentially answered by whether a firm goes the route of market transactions/acquisitions or forms an alliance.

Correct AnswerverifiedShow Answer

In regards to strategic alliances and networks, in the traditional industry-based view, firms are dependent players.

Correct AnswerverifiedShow Answer

Successful alliances and networks normally avoid socially complex relations among partners.

Correct AnswerverifiedShow Answer

For equity-based alliances and networks, the nature of shared resources and the degree of tacitness and complexity are:

Correct AnswerverifiedShow Answer

What is opportunism in the context of alliances, and what can be done to minimize its threat?

Correct Answerverified​Opportunism is defined as self-interest...View AnswerShow Answer

The marriage/divorce metaphor works if the alliance has only two partners, but not if it involves more than two.

Correct AnswerverifiedShow Answer

From the perspective of network position, firms located in the center of interfirm networks accumulate less power and influence.

Correct AnswerverifiedShow Answer

To protect against opportunism within an alliance relationship, a firm could minimize the threat by:

Correct AnswerverifiedShow Answer

Why and how might a "real option" be useful in a joint venture?

Correct AnswerverifiedWhen a joint venture is launched, one of...View AnswerShow Answer

Higher level shared technology is associated with lower profitability for parent firms.

Correct AnswerverifiedShow Answer

What are the drawbacks of forming an alliance? How does the learning race become a drawback?

Correct Answerverified​Alliances have a number of drawbacks. F...View AnswerShow Answer

Firm X is considering an alliance with Firm A. Which of the following institution-based consideration is most important to Firm X's decision?

Correct AnswerverifiedShow Answer

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Opportunism is defined as self-interest...
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When a joint venture is launched, one of...
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Alliances have a number of drawbacks. F...
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