Options In Alliances: Valuing Flexibility In Inter-firm Collaborations
by Francesco Baldi /
2012 / English / PDF
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The real options-based conceptual framework for alliance-making presented here responds to the challenge of developing a new metrics for managing strategic partnerships in the face of uncertainty. Such a framework involves: mapping (and selecting one of) the various staged paths envisioned for the start-up and development of the alliance in terms of strategic options exercisable over the lifetime of the cooperative venture assessing the incremental, synergistic value of those options (if exercised on the net, tangible and intangible, assets of the venture) anticipating the potential impact of risks on the success/failure of the venture and associated synergistic value erosion defining the optimal option map for implementing the strategic alliance via potential, successive adjustments to the initial strategy (information loop is closed).
