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Description‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 2
Management of Technology (MGT 325)
Due Date: 18 Feb 2023@11:59pm
Course Name: Management of Technology
Student’s Name:
Course Code: MGT 325
Student’s ID Number:
Semester: Second
CRN: 22509
Academic Year:2022-23-2nd Semester
For Instructor’s Use only
Instructor’s Name: Dr. Mir S Satar
Students’ Grade: /15
Level of Marks:
General Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only)
via allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks
may be reduced for poor presentation. This includes filling your information
on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from
students or other resources without proper referencing will result in ZERO
marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, doublespaced) font. No pictures containing text will be accepted and will be
considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Learning Outcomes:
✓ Explain of the concepts, models for formulating strategies, defining the
organizational strategic directions and crafting a deployment strategy.
Critical Thinking:
Students are required to and read the course material thoroughly, understand
the concepts and then proceed with this assignment.
‘Collaboration can include partnering with suppliers, customers, competitors,
complementors, organizations that offer similar products in different markets,
organizations that offer different products in similar markets, non-profit
organizations, government organizations, universities, or others. Collaboration can
also be used for many different purposes, including manufacturing, services,
marketing, or technology-based objectives. In North America, as many as 23
percent of all alliances are for research and development activities, compared to 14
percent in Western Europe and 12 percent in Asia.12 Collaboration arrangements
can also take many forms, from very informal alliances to highly structured joint
ventures or technology exchange agreements (licensing). The most common forms
of collaborative arrangements used in technological innovation include strategic
alliances, joint ventures, licensing, outsourcing, and collective research
organizations.’- Chapter 8 Collaboration Strategies
Question- Refer to chapter 8 of your textbook explain the common forms of
collaborative arrangements used in technological innovation with at least two
examples of each form.
Note for students:
❖ You are supposed to explain the example too i.e., how collaborative
arrangements were used by them, marely giving the name of the
company will not be enough.
❖ Minimum 5 collaborative arrangements are required, each carrying 3
marks.
❖ Word limit 200-250 words for each form of collaborative arrangement.
Directions:
✓ All students are encouraged to use their own words.
✓ Use Saudi Electronic University academic writing standards and APA style
guidelines.
✓ Use proper referencing (APA style) to reference, other styles will not be
accepted.
✓ Support your submission with course material concepts, principles, and
theories from the textbook and at least two scholarly, peer-reviewed journal
articles unless the assignment calls for more.
✓ It is strongly encouraged that you submit all assignments into the safe
assignment Originality Check prior to submitting it to your instructor for
grading and review the grading rubric to understand how you will be
graded for this assignment.
ANSWERS
STRATEGIC MANAGEMENT OF
Technological
Innovation
Sixth Edition
Melissa A. Schilling
©2020 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Chapter 8
Collaboration Strategies
8-2
©2020 McGraw-Hill Education
Ending HIV? Sangamo Biosciences and
Gene Editing
1
Sangamo Biosciences had developed zinc-finger nucleases (ZFNs), a technology
that could edit the genes of a living individual.
The technology had enormous potential, but it required a significant amount
of R&D work to ensure that it was both precise enough, and would penetrate
enough of an individual’s cells to make a difference.
One of Sangamo’s ZFN programs was to develop a way to give people a
mutation that would cure HIV. This was obviously a HUGE opportunity. Drug
development, however, is extremely expensive and risky, and Sangamo did not
yet have revenues to fund its programs.
Sangamo thus had to decide whether to partner with another organization on
the HIV program, and if so, how and with whom.
8-3
©2020 McGraw-Hill Education
Ending HIV? Sangamo Biosciences and
Gene Editing
2
Discussion Questions:
1. What were the pros and cons of Sangamo pursuing its gene
editing programs alone versus working with a partner?
2. Does the HIV program offer any special opportunities or
challenges?
3. What do you think Sangamo should do regarding the HIV
program? Should it license the technology to a large
pharmaceutical? Should it form a joint venture with another
biotech or pharma company? If so, who?
8-4
©2020 McGraw-Hill Education
Overview
Firms must often choose between performing
innovation activities alone or in collaboration.
Collaboration can enable firms to achieve more, at a
faster rate, and at less cost and risk.
However, collaboration also entails sharing control and
rewards, and may risk partner malfeasance.
The advantages of going solo are compared with those
of collaborating, and then different forms of
collaboration are compared.
8-5
©2020 McGraw-Hill Education
Reasons for Going Solo
Whether a firm chooses to engage in solo development
or collaboration will be influence by:
• Availability of capabilities (does firm have needed
capabilities in house? Does a potential partner?)
• Protecting proprietary technologies (how important is it to
keep exclusive control of the technology?)
• Controlling technology development and use (how
important is it for firm to direct development process and
applications?)
• Building and renewing capabilities (is the project key to
renewing or developing the firm’s capabilities?)
8-6
©2020 McGraw-Hill Education
Types of Collaborative Arrangements
1
There are numerous types of collaborative arrangements, each
with its own advantages or costs.

Strategic Alliances: formal or informal agreements between two or more
organizations (or other entities) to cooperate in some way.
• Doz and Hamel note that a
firm’s alliance strategy
might emphasize
combining complementary
capabilities or transferring
capabilities. It might also
emphasize individual
alliances or a network of
alliances.
Access the text alternative for these images
©2020 McGraw-Hill Education
8-7
Types of Collaborative Arrangements
2
Joint Ventures: A particular type of strategic alliance that entails
significant equity investment and often establishes a new
separate legal entity.
Licensing: a contractual arrangement that gives an organization
(or individual) the rights to use another’s intellectual property,
typically in exchange for royalties.
Outsourcing: When an organization (or individual) procures
services or products from another rather than producing them
in-house.
Collective Research Organizations: Organizations formed to
facilitate collaboration among a group of firms.
8-8
©2020 McGraw-Hill Education
Choosing a Mode of Collaboration
1
Firms should match the trade-offs of a collaboration mode to their needs.
NA
Speed
Cost
Control Potential for
Leveraging
Existing
Competencies
Potential for
Developing
New
Competencies
Potential for
Accessing
Other Firms’
Competencies
Solo Internal Low
Development
High
High
Yes
Yes
No
Strategic
Alliances
Varies
Varies
Low
Yes
Yes
Sometimes
Joint
Ventures
Low
Shared
Shared
Yes
Yes
Yes
Licensing In
High
Medium Low
Sometimes
Sometimes
Sometimes
8-9
©2020 McGraw-Hill Education
Choosing a Mode of Collaboration
NA
Speed
Licensing Out High
2
Cost
Control
Potential for Potential for Potential for
Leveraging
Developing
Accessing
Existing
New
Other Firms’
Competencies Competencies Competencies
Low
Medium
Yes
No
Sometimes
Outsourcing
Medium/ Medium Medium
High
Sometimes
No
Yes
Collective
Research
NA
Organizations Low
NA
NA
NA
NA
NA
Varies
Varies
Yes
Yes
Yes
8-10
©2020 McGraw-Hill Education
Choosing and Monitoring Partners
1
Partner Selection.
• Resource fit: How well does the potential partner fit the resource needs of
the project? Are resources complementary or supplementary?
• Strategic fit: Does the potential partner have compatible objectives and
styles?
• Impact on Opportunities and Threats: How would collaboration impact
bargaining power of customers and suppliers, degree of rivalry, threat of
entry or substitutes?
• Impact on Internal Strengths and Weaknesses: Would collaboration
enhance firm’s strengths? Overcome its weaknesses? Create a competitive
advantage?
• Impact on Strategic Direction: Would the collaboration help the firm
achieve its strategic intent?
8-11
©2020 McGraw-Hill Education
Choosing and Monitoring Partners
2
Partner Monitoring and Governance.
• Successful collaborations require clear yet flexible monitoring
and governance mechanisms.
• May utilize legally binding contractual arrangements.
• Helps ensure partners are aware of rights and obligations.
• Provides legal remedies for violations.
• Contracts often include:
1. What each partner is obligated to contribute.
2. How much control each partner has in arrangement.
3. When and how proceeds of collaboration will be distributed.
4. Review and reporting requirements.
5. Provisions for terminating relationship.
8-12
©2020 McGraw-Hill Education
Choosing and Monitoring Partners
3
• May also use shared equity ownership (that is, each
partner contributes capital and owns a share of equity in
the alliance).
• Helps to align incentives and provide sense of ownership.
• May rely on relational governance (self-enforcing
governance based on the goodwill, trust, and reputation
of partners).
• Built over time.
• Can facilitate more extensive cooperation, sharing, and learning
by partners.
8-13
©2020 McGraw-Hill Education
Research Brief
Strategic Positions in Collaborative Networks
A firm’s position within a
collaborative network influences its
access to information and other
resources, and its influence over
desired outcomes. Some of the key
aspects of a firm’s position include
centrality and opportunities for
brokerage. For example, in this
graph, though PPD Inc. has only
three alliances, it serves as an
important bridge between the two
lobes of the network, which should
give it important opportunities for
brokerage.
Access the text alternative for these images
©2020 McGraw-Hill Education
8-14
Discussion Questions
1.
What are some of the advantages and disadvantages of collaborating on
a development project?
2.
How does the mode of collaborating (for example, strategic alliance, joint
venture, licensing, outsourcing, collective research organization)
influence the success of a collaboration?
3.
Identify an example of collaboration between two or more organizations.
What were the advantages and disadvantages of collaboration versus
solo development? What collaboration mode did the partners choose?
What were the advantages and disadvantages of the collaboration
mode?
4.
If a firm decides it is in its best interest to collaborate on a development
project, how would you recommend the firm go about choosing a
partner, a collaboration mode, and governance structure for the
relationship?
8-15
©2020 McGraw-Hill Education

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