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.

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The question describes the shakeout phase in a joint venture as a period where both partner firms experience a crisis of identity, needing to decide for whom they work and how to handle uncertainty.
Option 1: 'True' — This statement aligns with common characterizations of the shakeout phase in collaboration literature, which emphasizes identity issues, role clarity, governance, and alignment between the partners as they move from formation to integration under uncertainty.
Option 2: 'False' — If one interpreted the shakeout phase as only a technical or performance-focused period without identity questions, this would miss the descriptive emphasis on inter-firm alignment, trust, and who ultimately bears responsibility. Such a view downplays the psychological and organizational integration challenges typical of shakeout.
Explaining Option 1 in more depth: during the early alliance period, even though goals are shared, each firm has its own culture, objectives, and ways of operating. The crisis of identity arises as both sides renegotiate decision rights, resource commitments, and who the venture ultimately serves, which is exactly what the statement asserts.
Explaining Option 2 in more depth: if one claimed there is no identity crisis, one would be assuming a perfectly synchronized partner view from the start, or that identity and uncertainty are resolved without friction. In practice, misalignments and ambiguity about governance and priorities are precisely what often characterizes the shakeout.
In short, the statement captures the core idea that the shakeout phase involves negotiating identity and dealing with uncertainty, while a false claim would mischaracterize the phase as devoid of these identity-related dynamics.

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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.

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