University of Minnesota Duluth

MgtS 4483 – Cooperative Strategies

Course Syllabus

Spring 2006

 

 

Instructor:

Geoffrey G. Bell, Ph.D., CA

Office hours:

Office:

SBE 121

  W 3:00-4:00; Th 4:30-5:30

Phone:

726-7640

  Or by appointment

email:

ggbell@d.umn.edu

fax:  218-726-7578

Website

www.d.umn.edu/~ggbell

 

 

Meeting time:             11:00-12:15 Tuesday / Thursday

 

Meeting location:       H314

 

Texts (required):        Lorange, Peter and Johan Roos (1993).  Strategic alliances: Formation, implementation, and evolution, Blackwell Business Publishing.[1]

 

Cases (required):       I find that students had a difficult time grasping the somewhat theoretical concepts related to strategic alliances, as few students have been involved in such corporate entities.  Therefore, to help you develop a better “real-world” understanding of the course material, I have added a course packet of cases that we will be discussing in class.  The case pack is available from the bookstore.

 

Questions to help you examine the case are now available here.

 

Articles (required):    In addition to the above-noted text and cases, I will also assign additional articles that I expect you to read.  These articles will be available either in the UMD library or on-line, through library-accessed databases.  They will also be posted to my web-site, in a protected section of the web-site, which you can access using your UMD account.  I expect students will access and read the articles prior to class.  This semester, the articles are:

 

Arino, Africa and Jose de la Torre (1998). “Learning from failure: Towards an evolutionary model of collaborative ventures,” Organization Science, 9(3):306-325.

Arino, Africa and Jeffrey J. Reuer (2004). “Designing and renegotiating strategic alliance contracts,” Academy of Management Executive, 18(3):37-48.

Campbell, Elise and Jeffrey J. Reuer (2001). “International alliance negotiations: Legal issues for general managers,” Business Horizons, January/February 2001:19-26.

Cullen, John B., Jean L. Johnson, and Tomoaki Sakano (2000). “Success through commitment and trust: The soft side of strategic alliance management,” Journal of World Business, 35(3):223-240.

Dyer, Jeffrey H., Prashant Kale, and Harbir Singh (2001). “How to make strategic alliances work,” MIT Sloan Management Review, Summer 2001:37-43.

Gomes-Casseres, Benjamin (1994). “Group versus group: How alliance networks compete,” Harvard Business Review, July-August 1994: 62-74.

Spekman, Robert E., Theodore M. Forbes III, Lynn A. Isabella, and Thomas C. MacAvoy (1998). “Alliance management: A view from the past and a look to the future,” Journal of Management Studies, 35(6):747-772.

Teng, Bing-Sheng (2003). “Collaborate advantage of strategic alliances: Value creation in the value net,” Journal of General Management, 29(2):1-22.

 

Course Overview:

            In your strategic management course (which you have either taken already or will take before you graduate), you learn a lot about competition between organizations, especially between business firms.  However, you will not learn much about cooperation between organizations, which is becoming an increasingly important part of today’s business landscape.  In this course, you will begin to learn about aspects of interorganizational cooperation, specifically strategic alliances.  We will examine the theoretical disciplinary underpinnings of cooperative business relationships, conditions necessary for cooperation to emerge and develop, and the “nuts and bolts” of structuring formal interorganizational cooperative ventures.

 

Objectives:

  1. To learn the importance of cooperative business relationships.
  2. To begin to understand necessary conditions to foster cooperative relationships between organizations.
  3. To begin to understand interorganizational relationships, especially strategic alliances – how they come into being, how they are managed, and how to assess their successfulness.
  4. To gain a practical understanding of alliance issues by preparing a variety of cases.
  5. To develop an in-depth understanding of one of the aspects of cooperative strategy we have studied in the course.

 

Prerequisites:  Mandatory: MgtS 3401; Recommended MgtS4481

If you do not meet the prerequisite, you are not eligible to enroll in the course.  Additionally, I expect you to come to class with a questioning mind – I want you to ask “why?” often during the course.

 

My Philosophy of Teaching:

            Learning should be an enjoyable experience for both the students and the instructor.  The learning process is greatly facilitated by active involvement of both the students and the instructor.  I expect you to help me create a positive learning atmosphere by coming to class ready to participate in the discussion.

            Additionally, for a positive learning environment to exist, an atmosphere of acceptance is vital.  We should all try to keep an open, but questioning, mind about ideas which our peers present in the class.  Before we criticize what appears to be a “silly” idea, we must remember that the person who “invented” the pet rock got rich!  However, before we accept others’ ideas uncritically, we need to remember that Thomas Watson, Senior, founder of IBM, expected that the total worldwide market for computers would never exceed five (that’s right, five – not five billion, but five), machines!

 

Course Format:

            The course will consist of a series of discussions, both of text and case material.  I do not plan to lecture for this course (except for summaries of the material), so it will be up to you students to keep the discussion going.  Therefore, it is imperative that students have read the material before class.  To help you prepare for the discussions, I will give you a set of “thought” questions for both the text material and the cases.

 

Preparation:

            I expect all students will come to class prepared to participate in the day’s activities.  I expect you to read the assigned readings (text material, articles, and cases) before coming to class.  If you have been unable to prepare adequately for the discussion, please tell me before the discussion session begins.  However, regardless of your level of preparation, I urge you attend all class sessions.

 

Attendance:

            Since constructive contribution to class discussion is an integral part of this course, attendance at classes is necessary.  A student who misses 25% of the classes will have great difficulty developing the knowledge and skills required to pass the class.  I plan to take attendance daily to assist me in determining class participation.

 

Course Requirements and Evaluation:

            You will have a variety of opportunities to show me your knowledge and learning.  Class participation and group presentations allow you contribute to the learning of your colleagues, and shows that you have read and thought about the material.  The hand-in case analyses allow you to show that you have thought about some of the course material in greater depth than merely reading the assigned readings.  The group project will allow you to develop and display an in-depth understanding of part of the material of the course.

 

The grading for the course is as follows:

 

 

Element

Percent of class grade

Trust exercise – individual component

 

Individual component

5%

Group component

5%

Class participation[2]

15%

Hand-in case analysis: 2 @ 15% each

30%

Group paper:

 

Proposal

5%

Final paper

15%

Final exam:

25%

Student survey

0 or -5%

Total

100% maximum

 

 

 

A. Trust exercise

            Trust is a crucial underpinning of interorganizational cooperative ventures (and many aspects of modern business, for that matter).  Therefore, it is imperative that students understand the term in some detail.  I have developed a short exercise that will hopefully help you do so.  I will outline in detail the trust exercise shortly after the class begins.  Essentially, you will have to discuss the meaning of “trust” with some “wise people” and then develop a group definition of the term, and consider why / how it matters in business. The exercise is available here.

 

B.  Class participation

            Why do I evaluate class participation?  Some students are under the misperception that class participation consists primarily of “showing up.”  However, class is like work in that few organizations will pay you merely to “show up.”  To receive the rewards you want (pay, in the case of a work organization; grades in the case of class), you are expected to add value to your organization.  Increasingly, organizations are demanding pay for performance.  Similarly, I do not reward students for merely showing up.  Much of the value-add in the class comes (believe it or not!) from the perspectives that you as students bring to the discussion.  When we discuss a concept, you may bring a work perspective (having worked in a similar organization), or a unique cultural perspective (especially for you non-Minnesotans!), or some detailed analysis.  Thus, class participation really includes active contribution to your and your colleagues’ learning.

            Sometimes, students also want permission to do extra work to “make up” a lack of active participation.  With the exception of the bonus marks discussed below, I do not allow this.  Why not?  Seeking to do extra work really presumes that the primary reason I want you to participate in class discussion is so I can evaluate whether or not you’ve read the assigned material.  However, ascertaining whether you’ve done so is really only a minor part of the exercise, though admittedly, it is a by-product.  My primary goal of asking you to participate actively in class discussion is my recognition that we all must contribute to the learning process.  Learning is a joint product of teacher and student wrestling with material, such that we all (including me) learn something valuable.  As mentioned above, we all bring our unique backgrounds and perspectives, and thus we all have something valuable to contribute to the class learning experience.  Having you share your thoughts with me one-on-one would allow me to estimate your comprehension of course material, but would rob your colleagues of the opportunity to learn from your experience and perspective, so does not meet the objectives of class participation.

            I will assign participation grades based on the quality of your participation, not just the quantity.  Indeed, simply monopolizing “air time” without adding to the learning of the group will not garner credit and may even detract from it.  Some of the criteria I will use to evaluate participation quality include:

·         Are your points relevant to the discussion?

·         Do you go beyond a mere recitation of case facts?

·         Are your implications clearly drawn?

·         Do you enhance the class’s understanding of the issues?

            To help me evaluate class participation fairly, please choose and stay in the same seat throughout the semester.  That way, the probability of erroneous participation credit will be minimized.

 

C.  Hand-in Case Analyses

            I will expect each student to prepare and hand in for grading two of the cases we discuss during the semester.  On the first day of class, I will hand around a sign-up sheet, where you will indicate which case you want to prepare.  Given that there are 35 students and 12 cases, I will want approximately 5-6 students to sign up for each case.  I will provide you with questions to help you understand the issues associated with each case, and I expect your write up will be about 3-5 pages, typed, double-spaced, plus any exhibits you choose to attach.

 

The sign-up sheet for hand-in cases is available here.

Case questions are available here.

 

D.  Group project

            Given that the course discusses interorganizational cooperation, it should not be surprising that there is a cooperative (group) element to the course.  I would like students to work in small groups (3-6 persons / group) on a project that will extend your learning regarding cooperative strategies.  Basically, you can choose one of two options for your group paper.  First, you can choose to extend your knowledge of one of the components we cover in the course.  That is, you can pick one of the topics we’ve studied in class, and examine it in greater detail.  Second, you can choose to examine a strategic alliance in great detail other than the ones we examine in our case studies.  (For example, last year, I had a group of students do a wonderful job studying the Pixar-Disney joint venture.)  Regardless of the option you choose, there are three components to this assignment.

First, I want you to prepare a short (3-5 page, double-spaced, including bibliography) proposal discussing what you’d like to examine.  If you choose the first option (extending classroom knowledge), your proposal should include a brief summary of what you already know about the topic from the class discussion, where and how you would like to extend your knowledge and a short bibliography (5-10 articles) of relevant articles that will help you.  If you choose the second option, I want you to outline what you know of the alliance (when it started up, who are the partners, whether and how well it’s working, etc) and your sources of that knowledge.  In both cases, I expect that your proposal will include a summary of information that you’ve already uncovered about the project.  That is, I expect that your proposal will include some new knowledge.

Second, I want each group to prepare a major (15-25 pages double-spaced) paper examining the topic covered in your proposal.  For those of you choosing option 1, I would like you to conduct an exhaustive literature review (I consider “exhaustive” to mean you will review at least 20-25 journal articles from leading journals[3]), and an assessment of the gaps in the literature.  For those of you choosing option 2, I want you to examine in detail the alliance.  Your report should look a lot like the cases we’re studying in class.

Third, I would like each group to give a brief (10 minute, plus Q&A) presentation of their findings.  Presentations will occur April 25 and April 27.  This is week 14 of class.  I will get comments on your presentation back to you no later than 5PM on April 28.  This will give you time to incorporate my comments into your final paper.

 

E. Final Exam

            There will be a written take-home case final exam in this class.  On the last Tuesday of the semester (May 2, 2006) I will give you questions to help you answer the final exam.  On that date, the final case will be available for purchase in the Bookstore.  You may purchase the final exam anytime, and use the questions I provide to help you formulate your answer.  The final exam is due in my hands no later than 4:00PM on Monday, May 8, 2006 (the end of the formally scheduled exam period).  You can choose whether you want to write up your answers in advance (in which case, they should be typewritten, double-spaced, and no greater than 10 pages in length).  If you want, you can come to the final exam and write your answers in blue books instead.  It’s entirely your call.

 

F. Student survey

            The student survey is very important.  I use it to “meet” you as an individual, to help tailor my lectures to the needs of the class, and to help me “put a face and a name together,” which is very important for grading class participation.  Therefore, I request that all students complete and return the survey (along with a recent photo) no later than Tuesday, January 24.  Students who fail to do so will be docked 5 percentage points.

 

G.  Incomplete grades

            Incomplete grades will be given only in cases of extreme hardship (such as the death of an immediate family member), and only after you have discussed the matter with me.  I will require that you document the hardship.

 

H.  Policy on late / missed papers

            The case analyses are due at the start of the class period in which we discuss the case.  The major paper is due at the start of the last class.  I will consider any paper not in my hands at the start of class on that date to be late.  I do not accept papers by email.  I will not accept late papers.

 

I.  Writing Assistance for Written Assignments

            Your ability to write cogently and coherently influences your career success.  Few managers can succeed in business today without strong writing skills.  Therefore, I expect that your written assignments will, at a minimum, be grammatically correct and free of spelling errors.  I reserve the right to evaluate your spelling and grammar when grading your work, and to dock papers up to one full letter grade for poor grammar.

            If you are concerned that your written work is “not up to par,” I recommend that you contact the Tutoring Center (40 CCtr, 726-6248) for assistance.

 

Excused absences:

            Students may be excused from handing in an assignment on the date specified only because of severe personal circumstances (e.g. death of an immediate family member, hospitalization).  If you are unable to hand in your assignment, please let me know in advance, or immediately upon your return.  Students who do not have an adequate reason for missing a quiz or an assignment will be awarded a grade of zero.  If you have any questions, please see me.

 

Students with disabilities:

            “It is University policy to provide, on a flexible and individualized basis, reasonable accommodations to students who have disabilities that may affect their ability to participate in course activities or to meet course requirements.  Students with disabilities are encouraged to contact their instructors early in the semester to discuss their individual needs for accommodations.”  What this means – please let me know if you’ve got special needs.  My goal is to foster an environment in which all students can maximize their learning experience.  Please let me know if there’s anything special I need to do to help you maximize your experience.  Together with the Access Center, we can work out a reasonable accommodation.

 

Academic integrity and plagiarism:

            I expect that students will act with the highest levels of academic integrity at all times.  Generally, that means that I expect that you will not cheat on assignments, either by copying other students’ work or by plagiarizing from other sources.  Please remember that plagiarism is a serious academic violation.  An academic’s stock (much like an author’s) is in ideas, so you should not use other people’s work without properly citing it.  This extends to your fellow class-mates as well.  If (as will inevitably happen) one of your peers says something brilliant you wish you had thought of, you can use their ideas, but only if you cite them as the original source.

            Additionally, for all your written work, I expect you to cite and reference your work correctly.  The only exception to this is that, in preparation of your major case assignment, you need not reference material you sourced from the case (although you may choose to do so for practice).  The Management Studies Department has recently adopted a plagiarism policy, now available on the departmental website (http://www.d.umn.edu/sbe/departments/mgmtstudies/Plagiarism.php).  I highly recommend that you read it to ensure you don’t accidentally run afoul of the rules.

 

Reservation of Rights to Change the Syllabus:

The above syllabus and accompanying course schedule are subject to change in the event of extenuating circumstances.

 


Tentative Class Schedule

 

Date

Activity

Week 1:

Tuesday, January 17, 2006

Introduction; review of syllabus

Thursday, January 19, 2006

What are strategic alliances and how do they work?

Readings:

Text: None

Article: Spekman et al, “Alliance management: A view from the past and a look to the future”

 

Week 2:

Tuesday, January 24, 2006

How do strategic alliances create value?

Readings:

Text: None

Article: Teng, “Collaborative advantage of strategic alliances: Value creation in the value net”

 

Thursday, January 26, 2006

Case: “ING Bank of Canada (B)”

 

Week 3:

Tuesday, January 31, 2006

The underpinnings of strategic alliances

Readings:

Text: None

Article: Cullen et al., “Success through commitment and trust: The soft side of strategic alliance management”

Trust exercise due

 

Thursday, February 2, 2006

Case: “USCO Logistics”

 

Week 4:

Tuesday, February 7, 2006

A conceptual model of strategic alliances

Readings:

Text: Chapter 1

 

Thursday, February 9, 2006

Case: “Ben & Jerry’s – Japan

 

Week 5:

Tuesday, February 14, 2006

Valentine’s Day

Alliance formation processes

Readings:

Text: Chapter 2

 

Thursday, February 16, 2006

Case: “Labatt – FEMSA”

 

Week 6:

Tuesday, February 21, 2006

Negotiating a strategic alliance

Readings:

Text: None

Articles: Arino & Reuer, “Designing and renegotiating strategic alliance contracts” and

Campbell & Reuer, “International alliance negotiations: Legal issues for general managers.’

 

Thursday, February 23, 2006

Case: “Autoliv QB”

By now, I will give you an interim class participation grade

 

Week 7

Tuesday, February 28, 2006

Evolution of strategic alliances

Readings:

Text: Chapter 3

 

Thursday, March 1, 2006

 

Case: Healthy Connections

By now, all students must have turned in one case assignment.

Group proposal due today

 

Week 8:

Tuesday, March 7, 2006

 

Thursday, March 9, 2006

Case: “Canadian Closures (A)”

 

Tuesday, March 14 & Thursday, March 16, 2006

 

Break week – no classes

Week 9

Tuesday, March 21, 2006

 

Thursday, March 23, 2006

Case: “Iceverks (A): Ben & Jerry’s in Russia

 

Week 10

Tuesday, March 28, 2006

Planning and control in strategic alliances

Readings:

Text, Chapter 4

 

Thursday, March 30, 2006

Case: “Eli Lilly in India

 

Week 11

Tuesday, April 4, 2006

Human resource management issues in strategic alliances

Reading:

Text: Chapter 5

 

Thursday, April 6, 2006

Case: “Larson in Nigeria

 

Week 12

Tuesday, April 11, 2006

Alliance management from the parents’ perspective

Reading:

Text: None

Article: Dyer et al, “How to make strategic alliances work”

 

Thursday, April 13, 2006

Case: “Japanese – American Seating”

 

Week 13

Tuesday, April 18, 2006

Cultural issues in strategic alliances

Readings:

Text: Chapter 6

 

Thursday, April 20, 2006

Case: “Cameco in Kyrgyzstan

 

Week 14

Tuesday, April 25, 2006

 

Group presentations

Thursday, April 27, 2006

Group presentations

 

Week 15

Tuesday, May 2, 2006

Obstacles in strategic alliances

Readings:

Text: Chapter 7

 

Final exam given out – I will give you questions for answering the final exam which will be available starting today at the Bookstore.

 

Thursday, May 4, 2006

Alliance networks

Readings:

Text: None

Article: Gomes-Casseres, “Group versus group: How alliance networks compete”

Emerging challenges in strategic alliances

Readings:

Text: Chapter 8

 

Monday, May 8, 2006

2:00-3:55

Final exam due

 

Have a GREAT semester!



[1] The text is available from the UMD bookstore or from Amazon.com.  Please note that there are used copies available from Amazon for significantly less than you will pay at the bookstore.

[2] I will breakdown your class participation grade into a portion for the first 5 weeks of class (worth 5% of the class grade) and a portion for the final 10 weeks of class (worth 10% of the class grade).  I will give you your class participation grade for the first half during our sixth week of class.

[3] The following is a partial listing of leading journals in the field:

Academy of Management Review

Academy of Management Journal

Administrative Science Quarterly

Advances in Strategic Management*

Journal of International Business Studies

Journal of Management

Management Science

Research in Organizational Behavior*

Strategic Management Journal

Organization Science

* An edited volume rather than a journal, but excellent nonetheless.