Which of the following best illustrates a credible commitment from an alliance partner?
A) CEO agreement to work together
B) Developing mutually agreeable output controls
C) Exchanging lower-level employees
D) Taking a significant equity stake in the alliance partner
E) All of these equally illustrate credible commitments.

Question

Quizplus · Accepted Answer

Taking a significant equity stake in the alliance partner shows a high level of commitment as it involves a financial investment in the partnership. It also aligns the interests of both parties, making it less likely for either party to back out of the alliance. CEO agreement, mutually agreeable output controls, and exchanging lower-level employees are all forms of commitment, but they may not be as strong or binding as an equity stake.

Which of the Following Best Illustrates a Credible Commitment from an Alliance