Marketing Strategy and Competitive Positioning pdf ebook

Commitment and interdependence: at its simplest, are the people in the partnering com-
panies going to be behind the alliance, and what mechanisms may be needed such as 
interlocking directorships and exchange of personnel or other liaison mechanisms? In a 
keiretsu (business group in Japan), the Japanese refer to what is necessary to ‘keep each 
other warm’ – their example suggests we should not underestimate the importance of 
people’s commitment, or lack of it, in an effective network organisation.
● 
Trust: the network organisation requires that each partner gives up some influence or 
control over important issues and becomes vulnerable to ineffective or hostile actions 
by other network members. This is a key aspect of relationship management in a 
network. The cases of network failure discussed earlier illustrate the vulnerability 
involved. Compare this to the risk of lack of commitment to a collaboration through 
an unjustified lack of trust in the partner organisation, and the significance of the issue 
becomes clearer.
● 
Social norms: it is suggested that network organisations should be considered in terms of 
behavioural issues, such as: (a) solidarity – the unity of action among network members; 
(b) mutuality – network partners acting for the common good and receiving a payoff 
in terms of benefits from the collaboration; (c) flexibility – the willingness of partners 
to change the joint arrangements as conditions change; (d) role integrity – clarity in 
what each partner organisation is to do; and (e) conflict handling – agreement on how 
conflicts will be handled in the network. The important point to bear in mind is that, 
while organisations are familiar with how to handle these questions in conventional, 

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MANAGING STRATEGIC ALLIANCES
independent, hierarchical structures, we are still learning how best to manage them in 
the very different setting of the collaborative network of organisations.
In a transparent, brand-orientated world, we can add to this list concerns about damage