If a firm’s core competence is proprietary technological knowledge, a joint venture is preferable.

Question

BlackTom AI · Accepted Answer

Question restatement: The prompt asks whether a firm’s core competence being proprietary technological knowledge makes a joint venture preferable.
Option 1: True. This claims that possessing proprietary technological know-how as a core competence makes a joint venture the preferable choice. A potential argument could be that leveraging external partners might help commercialize unique tech, but this is not universally true. Joint ventures are often chosen to access complementary assets, share risk, or enter new markets, not simply because the firm holds proprietary tech. Therefore, labeling joint ventures as preferable solely on the basis of having proprietary knowledge overlooks factors like control, alignment of incentives, and the need for complementary capabilities. This makes the statement overly simplistic.
Option 2: False. This asserts that the premise is not always correct and that a joint venture is not necessarily the preferable path merely because the firm has proprietary technological knowledge. Reasons supporting this view include the desire to maintain strategic control, protect intellectual property through exclusive arrangements, or pursue options like licensing, acquisitions, or internal development when stricter control or speed-to-market is required. A firm may actually prefer other modes of collaboration or self-reliance depending on strategic goals, risk tolerance, and the nature of the technology. Consequently, the statement in Option 2 aligns with nuanced strategic reasoning that a joint venture is not automatically the best choice.
Underlying concept: Make a decision about alliances by weighing strategic objectives, control considerations, IP protection needs, and the specific market dynamics, rather than assuming that proprietary knowledge automatically points toward joint ventures. Misconceptions to avoid: assuming exclusivity or control are always preserved in a JV, or that proprietary tech mandates external collaboration without evaluating alternatives.
Summary of reasoning for each option: The claim in Option 1 is an oversimplification that ignores strategic trade-offs, while Option 2 captures the broader reality that a joint venture is not inherently preferable solely due to having proprietary technological expertise. Therefore, the more accurate stance is that the statement is not universally true, making Option 2 the defensible position in this context.

If a firm’s core competence is proprietary technological knowledge, a joint venture is preferable.

View Explanation

Log in for full answers

Similar Questions

Question at position 16 When entering a Joint Venture with a capital partner, you want to make sure your business plans and vision align.TrueFalse

At the beginning of a joint venture (labeled the “shakeout phase”), both firms face a crisis of identity during which they need to figure out for whom they work and how to deal with uncertainty.

The most typical joint venture is a ________ venture.

A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary.

4. What is the definition of a "joint venture" in terms of theatrical producing?

Which one of the following is a key advantage of a joint venture?

One advantage of joint ventures is that

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler