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The strategic choice concerning whether to form cooperative interfirm relationships

The strategic choice concerning whether to form cooperative interfirm relationships or to rely on pure market transactions or M&As to grow the firm is part of:

a.Stage One.

b.Stage Two.

c.Stage Three.

d.Stage Four.

e.Stage Five.

12.In comparing M&As with alliances and networks, which of the following is not correct?

a.M&As are costly.

b.M&As have significant transaction costs.

c.Many M&As end up destroying value.

d.Alliances and networks preclude future upgrading into possible M&As.

e.Alliances and networks can be considered as a flexible intermediate solution.

13.Strategic fit refers to whether the partner firm possesses:

a.Technology.

b.Capital.

c.Distribution channels.

d.A through C above.

e.Goals, experiences, and behaviors that facilitate cooperation.

14.The first concern in determining whether a relationship should be based on contract or equity is:

a.The kind of resources and capabilities that are shared.

b.Direct monitoring and control.

c.Real options.

d.Institutional constraints.

e.None of the above.

15.Weak ties in organizational relationships:

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.A through C above.

e.Are less costly to maintain.

16.As a type of relationship tie, exploitation refers to such things as:

a.Selfishness.

b.Choice.

c.Efficiency.

d.Execution.

e.B through D above.

17.In measuring the performance of strategic alliances and networks, subjective measures include:

a.Market performance.

b.Stability.

c.A and B above.

d.The level of managers’ satisfaction.

e.Longevity.

18.Which (if any) of the following will not influence the performance of alliances and networks?

a.Equity.

b.Learning and experience.

c.Nationality.

d.Relational capabilities.

e.All can have an influence.

19.A lower level of ____contribution may indicate a firm’s relative lack of commitment:

a.Equity

b.Learning and experience

c.Nationality

d.Relational capabilities

e.All of the above

20.The stock market responds favorably to alliance activities, but only under which circumstances?

a.Complementary resources.

b.Previous alliance experience.

c.Ability to manage the host country’s political risk.

d.Partner buyouts.

e.All of the above.

Feb 14 2020 View more View Less

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