Taking risk in joint ventures: whose throw of the dice?
✍ Scribed by Julian C. Sulej; Victoria Stewart; William Keogh
- Publisher
- John Wiley and Sons
- Year
- 2001
- Tongue
- English
- Weight
- 120 KB
- Volume
- 10
- Category
- Article
- ISSN
- 1086-1718
- DOI
- 10.1002/jsc.546
No coin nor oath required. For personal study only.
✦ Synopsis
Abstract
The development of key partnerships between innovative small and medium‐sized enterprises (SMEs) and larger organizations is a primary strategic consideration. The level of risk involved can often mean that smaller firms are placed in highly vulnerable positions when attempting to develop a product, process or service.
Risk may be related to a wide range of influences including asymmetric resource allocation, the perception and framing of problems and the building of trust and commitment. The smaller organization may also have concerns that a larger partner would absorb their intellectual property.
Key considerations in determining perceived risk appear to be related to the shadow of the future, i.e. the balance of probabilities concerning investment and relative return combined with future expectations regarding any situation and its potential outcomes. The experience and individual agendas of managers and their influence on risk perception within such alliances are examined.
Future research using longitudinal studies to examine risk perception and evaluation in relation to strategic decision making is required.