Term
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Definition
| A voluntary agreement between firms involving exchange, sharing, or co-developing of products, technologies, or services |
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Term
| contractual (non-equity-based) alliances |
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Definition
| Alliances between firms that are based on contracts and do not involve the sharing of ownership |
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Term
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Definition
| Alliances based on ownership or financial interest between firms |
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Term
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Definition
| One firm invests in another as a strategic investor |
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Term
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Definition
| both firms invest in each other to become cross-shareholders |
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Term
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Definition
| transfer of the control of operations and management from one firm (target) to another (acquirer), the former becoming a unit of the latter |
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Term
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Definition
| the combination of operations and management of two firms to establish a new legal entity |
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Term
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Definition
| An investment in real operations as opposed to financial capital |
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Term
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Definition
| capability to successfully manage inter-firm relationships |
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Term
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Definition
| A situation in which alliance partners aim to outrun each other by learning the “tricks” from the other side as fast as possible |
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Term
| Advantages and disadvantages of strategic alliances |
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Definition
A - Reducing costs, risks, and uncertainties. Accessing complementary assets and learning opportunities. Possibilities to use alliances as real options
D - Choosing wrong partners. Potential partner opportunism. Risks of helping nurture competitors (learning race) |
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Term
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Definition
| the difference between the acquisition price and the market value of target firms |
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Term
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Definition
| the effective matching of complementary strategic capabilities between firms |
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Term
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Definition
| the similarity in cultures, systems, and structures between firms |
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