In the context of alliance formation,shared capabilities is one of the driving forces in deciding whether to take a contract or an equity approach.

Question

Quizplus · Accepted Answer

Shared capabilities refer to the resources and knowledge that alliance partners can bring together to create new value. When deciding whether to use a contract or equity approach to form an alliance, the presence of shared capabilities can be a significant factor. If there are significant shared capabilities, an equity alliance may be more appropriate as it allows for a more integrated and long-term collaboration, whereas a contract alliance may be sufficient if the capabilities are more finite or not as critical to the success of the alliance.

In the Context of Alliance Formation,shared Capabilities Is One of the Driving