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Network Advantage: How to Unlock Value From Your Alliances and Partnerships

Book Description

Companies made more than 42,000 alliances over the past decade worldwide, many of which failed to deliver strong results. This book explains why and how you can seize the benefits from your business's network of alliances with customers, suppliers and competitors.

This network can provide three key advantages:

  • superior information

  • better cooperation

  • increased power

  • Network Advantage shows how awareness of these three advantages can help align your portfolio of alliances with your corporate strategy to maximize advantages from existing networks and to position your business as an industry leader.

    This book is written by three leading authorities in the field of organizational management who work with many international corporate clients. Based on groundbreaking research and illustrative cases, it provides practical tools to help you think strategically about reconfiguring your alliances and partnerships. For business executives, consultants, and executive MBAs who want to get the most advantage from the combined power of their alliance portfolios, Network Advantage offers in-depth, practical guidance. Make it your first strategic connection to gaining competitive advantage!

    Companies' connections to other firms—their network of alliances—matter for economic success. In this practical, jargon-free, evidence-based book, three experienced scholar/educators provide practical tools to understand your company's network positioning and what to do to build webs of relationships that provide competitive advantage and economic value.

    —Jeffrey Pfeffer, professor, Graduate School of Business, Stanford University and co-author of The Knowing-Doing Gap.

    The book, Network Advantage, presents compelling ideas and is a must-read. It articulates three different perspectives to think about a firm's network advantage and shows how a firm can maximize the value of its alliance network. The book is filled with theoretical and practical insights on the topic and offers captivating case studies to illustrate its key points. It is fun to read. I highly recommend this book.

    —W. Chan Kim, The BCG Chair Professor of INSEAD and the Co-director of the INSEAD Blue Ocean Strategy Institute

    In this eminently researched book, the authors show how executives and entrepreneurs alike can unlock the value of alliances. And the book comes with some "secrets" to success that most managers overlook. Every CEO, executive and entrepreneur who are collaborating with other firms ought to read this book.

    —Morten T. Hansen, Professor at University of California at Berkeley, author of Collaboration and co-author of Great by Choice.

    Don't compete alone! "Network Advantage" provides a fresh perspective on how all firms can benefit from their alliances and partnerships. The authors seamlessly integrate academic research and real life examples into a practical step by step guide for unleashing the power, information and cooperation advantages available in networks. A must read for thoughtful executives and entrepreneurs alike.

    —Stein Ove Fenne, President, Tupperware U.S. & Canada

    Having the "right" business network is everything for a company's success in Asia and worldwide. With its rich cases and practical tools, this book is an indispensable guide for a thoughtful executive on how to design, build and manage a network that will make your firm globally competitive.

    —Yong-Kyung Lee, Former CEO of Korean Telecom, Member of the Korean National Assembly.

    Alliances and Partnerships, in their various formats and guises, are the bridges that allow businesses to thrive in their ecosystems by leveraging each other's strengths. The authors show how those bridges, when used appropriately, can help your firm create an alliance network to enhance your business power. The book contains many examples and models to help you shape your own alliance strategy in a world of ever increasing co-opetition.

    —Ricardo T. Dias, Strategic Alliances Director, Hewlett Packard (HP) Software, Asia Pacific & Japan

    Table of Contents

    1. Cover
    2. Endorsements
    3. Title page
    4. Copyright page
    5. Acknowledgments
    6. Preface
      1. Bridging the Gap between Academics and Executives
      2. Our Perspectives
      3. Increasing Your Network Advantage
      4. The Toolbox
      5. Benefits For You
    7. Introduction: All Roads Lead to London
      1. Three Degrees of Network Advantage
      2. From Academic Research to Management Practice
      3. How to Use this Book to Increase Your Network Advantage
      4. Going Forward
      5. Chapter Highlights
    8. Chapter One: Network Advantage: Making the Stealth Bomber
      1. A Tale of Two Attempts
      2. The Principles of Network Advantage
      3. Alliance Portfolios
      4. Alliance Portfolios versus Ecosystems
      5. First-Degree Network Advantage
      6. Second-Degree Network Advantage
      7. Third-Degree Network Advantage
      8. Why Networks Fail
      9. Going Forward
      10. Chapter Highlights
    9. Chapter Two: Comparing Network Advantage: Sony versus Samsung
      1. First-Degree Advantage
      2. Second-Degree Advantage
      3. Third-Degree Advantage
      4. Going Forward
      5. Chapter Highlights
    10. Chapter Three: The First-Degree Perspective: Strengthening the Foundation of Network Advantage
      1. “Four Dimensions of Fit” Framework
      2. Applying the “Four Dimensions of Fit” Framework: The Chalhoub Group Case
      3. Capturing the “Four Dimensions of Fit”: Alliance Fit Chart
      4. Using the First-Degree Assessment Tool
      5. First-Degree Assessment in Action: Philips Electronics
      6. Going Forward
      7. Chapter Highlights
    11. Chapter Four: The Second-Degree Perspective: Understanding the Alliance Portfolio Configurations that Deliver Network Advantage
      1. Hub-and-Spoke Alliance Portfolio Configuration
      2. Integrated Alliance Portfolio Configuration
      3. Hybrid Alliance Portfolio Configuration
      4. Renesas's Hybrid Portfolio Configuration: A Blend of the Two
      5. The Configuration Alignment Tool (CAT): Conceptual Overview
      6. Going Forward
      7. Chapter Highlights
    12. Chapter Five: Evaluating and Changing Your Alliance Portfolio Configuration
      1. Visualizing the Second Degree
      2. Visualizing Your Firm's Second Degree
      3. Going Forward
      4. Chapter Highlights
    13. Chapter Six: The Third-Degree Perspective: Achieving the Status Advantage
      1. What is a Firm's Status?
      2. When Network Status Matters Most
      3. What High-Status Companies Can Do with Their Status
      4. And What About Low-Status Firms?
      5. Going Forward
      6. Chapter Highlights
    14. Chapter Seven: Assessing and Increasing Your Status: Extracting Energy from Waves
      1. Understanding and Enhancing Your Firm's Status
      2. Using Public Relations Strategies to Increase Your Status
      3. Be Prepared for Greater Scrutiny and Commit Long Term
      4. The Birth of Poseidon
      5. Going Forward
      6. Chapter Highlights
    15. Chapter Eight: Maximizing Network Advantage: Designing Your Alliance Portfolio Strategy
      1. Designing Your Alliance Portfolio
      2. Should I Build or Should I Join?
      3. When and How to Leave Alliances … And How to Plan for Termination
      4. Going Forward
      5. Chapter Highlights
    16. Chapter Nine: Recognizing Patterns: Two Alliance Portfolio-Building Styles
      1. Why Patterns Matter
      2. The Hub-and-Spoke Portfolio-Building Style: ARM and Apple
      3. The Integrated Portfolio-Building Style: Ford, Toyota, and Honda
      4. Styles of Emerging Market and Developed Market Companies
      5. How to Change Your Style
      6. Going Forward
      7. Chapter Highlights
    17. Chapter Ten: Management Practices to Sustain Network Advantage
      1. Managing Information Flows
      2. Alliance Management Offices
      3. Alliance Management DNA
      4. Management Practices Needed to Realize First-Degree Advantage
      5. Management Practices Needed to Realize Second- and Third-Degree Advantages
      6. Going Forward
      7. Chapter Highlights
    18. Appendix One: About Our Research
      1. Academic Background
      2. Mapping the Networks
      3. Network Advantage Measures
    19. Appendix Two: The Toolbox
      1. The First-Degree Assessment Tool
      2. The Second-Degree Assessment Tool
      3. The Third-Degree Assessment Tool
      4. The Build or Join Tool
      5. The Alliance Portfolio Jigsaw Tool
    20. Appendix Three: Directory of Company Names
    21. Glossary
    22. Index