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Fall 2020 - STA630 - 1
Fall 2020 - STA630 - 1
Case:
Product development alliance is defined as a project-based working relationship between two
partner firms involved in the conception, testing, production or marketing of a new product. In
recent years, most of the Chinese firms have increasingly been entering into new product
development alliances to save costs and time, share resources, and, above all, enhance
technological competitiveness through mutual learning and knowledge acquisition. One of the
main reasons for alliance failure and hurdle in mutual knowledge transfer is the difficulty in
dealing with transactional uncertainties and strong ties between the partnering firms help to
reduce transactional uncertainties and increase the mutual knowledge transfer among them.
A research study was conducted to check the effect of strong ties on knowledge transfer among
the partnering firms in alliances. A one-time data has been collected from R&D department
heads of 150 Chinese machinery producing firms and 150 electronics firms who are in new
product development alliances by using a simple random sampling technique. The findings of the
study show that the strength of ties such as (a) interaction intensity, (b) interaction intimacy, (c)
length of firm-level ties, and (d) depth of firm-level ties has a direct effect on knowledge
acquisition between the partnering firms while a) communication quality and (b) perceived
fairness have mediating effect towards the relationship of tie strength on knowledge acquisition.
Requirements:
Carefully read the above case and answer the questions mentioned below.
1- Draw a schematic diagram after identifying the dependent, independent, and
moderating/intervening variables (whichever is present) from the above-mentioned
case. (7 Marks)
Schematic Diagram
Moderate/ Intervening
Independent Variables Dependent Variables
Variables
Strength of Ties
Interaction Communication
Intensity Knowledge Quality & Perceived
Depth of Firm-Level Acquisition Fairness
Ties
2- Identify the target population, sample size, and sampling technique. (6 Marks)