Informal Alliances Information Trading Between Firms
Informal Alliances Information Trading Between Firms
Stephan Schrader
The book Informal Alliances Information Trading Between Firms was written by author Stephan Schrader Here you can read free online of Informal Alliances Information Trading Between Firms book, rate and share your impressions in comments. If you don't know what to write, just answer the question: Why is Informal Alliances Information Trading Between Firms a good or bad book?
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Take, for example, two firms A and B that compete primarily on product quality and not on product price. Assume firm A possesses information -14. that could help both firms to simplify the production process but not to improve product quality. Even i£ A provides this information to B, A still benefits from the simplification. In other words, the rent that A expects to draw from this information is largely unaffected by whether firm B also knows the information. Transferring the information crea...tes few costs for A. 3 Firm B, however, might benefit greatly from receiving the information, creating an obligation to reciprocate information that could benefit A in turn. Thus both firms would gain from trading this type of information. Third, a firm does not give up an important competitive advantage as long as the receiver could have acquired the same or similar information from another source as well. Often, proprietary know-how can be independently developed by any competing firm that needs it, given an appropriate expenditure of time and resources (Teece, 1986; von Hippel, 1987).
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