The likelihood of a strategic alliance producing synergy and innovation is increased by
A) the emergence of path dependence between the alliance partners.
B) the equality of the resources that the two organizations contribute.
C) the similarity of the corporate and national cultures of the organization.
D) the extent to which the knowledge stocks of each organization are integrated.

Question

Quizplus · Accepted Answer

The extent to which the knowledge stocks of each organization are integrated is most likely to produce synergy and innovation in a strategic alliance. This is because successful innovation and synergy are dependent on the exchange of knowledge and expertise between partners. Therefore, a close integration of the knowledge stocks of both organizations can facilitate the exchange of ideas and insights, leading to innovation and synergy. Option A is incorrect because path dependence can lead to a lack of innovation and potential conflict between the partners. Option B is incorrect because equal resource contribution does not necessarily imply knowledge and expertise sharing. Option C is incorrect because too much corporate and national cultural similarity may limit diversity in thinking and exchange of ideas.

The Likelihood of a Strategic Alliance Producing Synergy and Innovation