ORGS 4560 Lecture Notes - Lecture 5: Sensemaking
23 Feb 2016
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Need to understand what makes some alliances work over others. Large and international experienced companies find working in collaborative alliance, where decisions are made by consensus, was too difficult and time consuming. Factors that account for differences in corporate alliances: incentives, compatibility, governance procedures, favourable economic conditions, trust. Ability to rely on mutual trust or self-control is essential. Alliance: forma agreement between parties to pursue a set of private and common goals through sharing of resources. Motivation is purely for economic reasons and to pursue strategic moves. Trust: a manageable act of faith in people, relationships and social institutions: inter-partner relationships are very important = determinant of alliance success. Relational quality: extent to which partners feel comfortable and are willing to rely: involves degree of compatibility of corporate cultures, decision-making styles, on trust in dealing with one another convergence of worldviews, and other organizational characteristics. Factors of relational quality: initial conditions, determine degree of trustworthiness.
