CHAPTER 9 GLOBUS EXAM
QUESTIONS & ELABORATED
COMPLETE ANSWERS
build-borrow-or-buy framework - Correct Answer ✔✔ Conceptual model that aids firms
in deciding whether to pursue internal development (build), enter a contractual
arrangement or strategic alliance (borrow), or acquire new resources, capabilities, and
competencies (buy).
strategic alliances - Correct Answer ✔✔ voluntary arrangements between firms that
involve the sharing of knowledge, resources, and capabilities with the intent of
developing processes, products, or services
relational view of competitive advantage - Correct Answer ✔✔ strategic management
framework that proposes that critical resources and capabilities frequently are
embedded in strategic alliances that span firm boundaries
real-options perspective - Correct Answer ✔✔ approach to strategic decision making
that breaks down a larger investment decision into a set of smaller decisions that are
staged sequentially over time
Coopetition - Correct Answer ✔✔ cooperation by competitors to achieve a strategic
objective
learning races - Correct Answer ✔✔ situations in which both partners in a strategic
alliance are motivated to form an alliance for learning, but the rate at which the firms
learn may vary
non-equity alliance - Correct Answer ✔✔ partnership based on contracts between firms
explicit knowledge - Correct Answer ✔✔ knowledge that can be codified; concerns
knowing about a process or product
equity alliance - Correct Answer ✔✔ partnership in which at least one partner takes
partial ownership in the other
tacit knowledge - Correct Answer ✔✔ knowledge that cannot be codified; concerns
knowing how to do a certain task and can be acquired only through active participation
in that task
corporate venture capital - Correct Answer ✔✔ equity investments by established firms
in entrepreneurial ventures; CVC falls under the broader rubric of equity alliances
QUESTIONS & ELABORATED
COMPLETE ANSWERS
build-borrow-or-buy framework - Correct Answer ✔✔ Conceptual model that aids firms
in deciding whether to pursue internal development (build), enter a contractual
arrangement or strategic alliance (borrow), or acquire new resources, capabilities, and
competencies (buy).
strategic alliances - Correct Answer ✔✔ voluntary arrangements between firms that
involve the sharing of knowledge, resources, and capabilities with the intent of
developing processes, products, or services
relational view of competitive advantage - Correct Answer ✔✔ strategic management
framework that proposes that critical resources and capabilities frequently are
embedded in strategic alliances that span firm boundaries
real-options perspective - Correct Answer ✔✔ approach to strategic decision making
that breaks down a larger investment decision into a set of smaller decisions that are
staged sequentially over time
Coopetition - Correct Answer ✔✔ cooperation by competitors to achieve a strategic
objective
learning races - Correct Answer ✔✔ situations in which both partners in a strategic
alliance are motivated to form an alliance for learning, but the rate at which the firms
learn may vary
non-equity alliance - Correct Answer ✔✔ partnership based on contracts between firms
explicit knowledge - Correct Answer ✔✔ knowledge that can be codified; concerns
knowing about a process or product
equity alliance - Correct Answer ✔✔ partnership in which at least one partner takes
partial ownership in the other
tacit knowledge - Correct Answer ✔✔ knowledge that cannot be codified; concerns
knowing how to do a certain task and can be acquired only through active participation
in that task
corporate venture capital - Correct Answer ✔✔ equity investments by established firms
in entrepreneurial ventures; CVC falls under the broader rubric of equity alliances
