Establishing Successful Partnerships Under Conditions of Unbalanced Power

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Establishing Successful Partnerships Under Conditions of Unbalanced Power
Anneke Zwart, Student (University), Netherlands, Moderator
The development of long-term relationships is strategically important for many organizations. For example, partnerships can:
- Provide extended resources for the creation of new technologies,
- Support organizations to increase efficiency
- Improve the process of innovation generation.

However, many partnerships are unsuccessful. What are the reasons?
Khanna et al. (1998) argues that many partnerships fail because of a poor understanding of the strategic dynamics when the relationship between firms is asymmetric due to power imbalances. Large asymmetries can be a major barrier to effective collaboration, both on the collaborative and the competitive components of inter-firm interactions. The collaborative aspects refer to the development of common benefits through the use of each otherís resources and knowledge, while competitive aspects refer to the usage of a partnerís knowledge and resources for own objectives.
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