Dollinger index

Creating the Organization 363

less time and resources and be tempted to behave opportunistically. It may let the other

side do all the work and take all the risks while it enjoys the benefits of cooperation.

The second criterion must be met in order to join the two enterprises’ cultures and

develop a strong sense of trust. The top managements of the two firms must not only

be able to work together but also to model cooperative behavior for their subordinates.

When subordinates see top managers cooperating and sharing resources and informa-

tion, they are likely to follow suit. Commitment at the top is essential.

The third criterion asks the partners to build on past experiences. If they have worked

together successfully in the past, that history and momentum can work again. There is

certainly no guarantee, but the probability of a successful alliance is increased.

After these three criteria are met, the other criteria for partner selection are typically

contingent on the goals and nature of the joint venture: product orientation, service

delivery, technology sharing, or the like. Partnership is an attractive option when the

potential partner has complementary skills with little duplication and when the relation-

ship creates a mutual dependence that makes cooperation in everyone’s self-interest.

Good communications, similar cultures and values, compatible operating policies, and

compatible goals all make potential partners attractive. A partner with a strong reputa-

tion is valuable because it can enhance the other firm’s legitimacy.^65

Processes of Reciprocity

How do entrepreneurs position themselves and their firms to enter into these alliances,

networks, and cooperative partnerships? Why do people allow entrepreneurs to do this?

From the business viewpoint, the primary reason is that the entrepreneurial firm has

something to offer the partner—a skill, a process, a technology, a system for ad-

ministration, access to a customer, or a desirable location.

But it is the entrepreneur who, on a personal level, initiates the contact and maintains

the relationships that may turn into contracts and formal arrangements. People allow

entrepreneurs to approach them with these cooperative and collective strategies for four

reasons:

1. Friendship. The entrepreneur has developed a nurturing and caring relationship
   with the people at the target organization.


2. Liking. There is pleasure and comfort in reciprocity and in finding someone with a
   mutual affinity.


3. Gratitude. The entrepreneur has put a member of the target’s firm in his or her debt

Competing Organizations

Noncompeting Organizations

Direct Contact

Confederate Alliance

Conjugate Alliance

Indirect Contact

Agglomerate Network

Organic Network

TABLE 9.1 A Typology of Alliances

SOURCE: Adapted from G. Astley and C. Fombrun, “Collective Strategies: Social Ecology of Organizational Environments,”

Academy of Management Review 8, 1983: 576-587.