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Li et al. (2012) "Governance in multilateral R&D alliances

32 important questions on Li et al. (2012) "Governance in multilateral R&D alliances

What do the authors explore drawing on the social exchange theory?

Governance decisions in multilateral R&D alliances

What is a well-known mechanism to encourage knowledge exchange and reduce partners' knowledge leakage concerns in R&D alliances?

A equity-based governance structure

Why may more partners affect alliance effectiveness in terms of both knowledge sharing and control?

By the additional complexity

What is a multilateral alliance?

A single cooperative arrangement involving three or more partner firms

Why is the appropriate governance mechanism for a multilateral R&D alliance likely to differ from that of a bilateral alliance?

Because the increasing number of alliance partners

Why do the authors draw on insights from the social exchange theory?

Because it emphasizes the transaction of exchange relationships from restricted to generalized as the number of partners increases

What is the primary objective of this paper?

Explore the differences between multilateral and bilateral R&D alliances in their governance strategies

What happens from a knowledge sharing perspective?

When a relationship transforms from restricted to generalized with a larger number of partners, knowledge exchange becomes more complex and challenging. Especially for the exchange of complex and/or tacit knowledge because of the inseparability of operational routines that are typical in R&D alliances.

Why are multilateral R&D alliances more likely to focus on partners' attention on knowledge leakage concerns?

From a knowledge protection perspective,in a multilateral alliance, negative effects of noncooperation are potentially diffused over several partners, and one partner’s uncooperative behavior is more likely to be anonymous than in the bilateral partnership. This makes monitoring the partners’ behaviors in the multilateral alliance more difficult which creates uncertainty about other partners’ behaviors.

Why is the generalized exchange relationship in multilateral alliances more likely to be governed by an equity-based governance structure?

From a knowledge sharing perspective, when a relationship transforms from restricted to generalized with a larger number of partners, knowledge exchange becomes more complex and challenging.

Why are multilateral alliances heterogeneous?

Because the relationships among the same set of partners may take various forms

Which two basic types of exchange relationships are suggested by the social exchange theory in multiparty settings?

Net-based
Chain-based

What happens in a net-based setting?

Each individual party acts in a relationship with the group as a whole; that is, individual parties give to the group as a whole and derive benefits directly from the group.

What happens in a chain-based setting?

Individual parties in the group are “so positioned that they operate a chain of univocal reciprocations to each other as individual units”.

What is the research objective?

First, how do multilateral R&D alliances differ from bilateral ones in their governance structures as a mechanism to balance the goals of knowledge sharing and knowledge protection?
Second, how do these governance structures differ between net-based and chain-based trilateral R&D alliances?

When does unintended knowledge sharing occur?

When the knowledge owner cannot clearly separate the knowledge intended for sharing from the knowledge not intended for sharing.

How do the authors define multilateral alliances?

As a cooperative arrangement involving at least three parties

What are both multilateral and bilateral for arrangements?

Both multilateral and bilateral alliances are single-alliance arrangements which means that regardless of the number of partners engaged in a multilateral alliance, the alliance represents one arrangement. There are many alliance arrangements in an alliance network.

In which way do multilateral and bilateral alliances differ from alliance networks?

In the number of deals/arrangements that are involved. An alliance network can also be a collection of bilateral alliances, a collection of multilateral alliances, or a combination of both.

Between with social exchanges is distinguished?

Generalized social exchange
Restricted social exchange

When does generalized social exchange occur?

Occur among a group of at least three parties, with no direct reciprocity among them.

When does restricted social exchange occur?

When two parties directly exchange with each other in a dyadic (or mutual) exchange.

When is the potential volume likely to increase?

From a knowledge sharing perspective, the potential volume from knowledge sharing is likely to increase as the number of alliance partners grows. Thus, increasing the number of alliance partners can be seen as equivalent to an upward shift in the demand curve in Figure 1, encouraging more intra-alliance knowledge transfers

What is needed to facilitate and promote knowledge sharing among partners?

A hierarchically oriented governance structure

What can these integrative mechanisms be?

Meetings, personnel exchanges, and personal interactions that are effective in overcoming the challenges of transferring tacit/complex knowledge

Why is an equity-based governance more likely to be adopted by net-based than chain-based trilateral R&D alliances?

Although equity-based governance is expensive, it is more likely to be adopted by net-based than chain-based trilateral R&D alliances to better ensure knowledge sharing and protection.

What does a net-based trilateral R&D alliance involve?

Partner firms that pool their resources allocated to R&D activities and benefit from the innovations derived from the collective contributions of all partner firms.

How are partners positioned in a chain-based trilateral R&D alliance?

Partner firms are positioned such that innovations are developed and largely or wholly commercialized in sequence.

What does the value chain imply?

Sequential interdependence of value-adding activities from upstream to downstream along the chain. The more stages that are completed within the firm, the greater its degree of vertical scope. Thus, broader vertical scope implies higher sequential interdependence in the activities along the value chain.

How can the scope of R&D alliances vary?

From exclusive R&D activities to comprehensive value creation efforts that begin with R&D activiteis and end with customer sales and support.

What does a broad alliance scope enhance?

The potential for exposure of partner firms’ core technologies and valuable knowledge assets to each other; protection of these assets is even more challenging in such alliances.

What happens when firms collaborate?

They build an understanding of each other and trust.

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