The Effect of Culture in the International Collaboration



According to the research findings, there are different types of collaborations used by organizations around the world. The choice of the type of collaboration that organizations choose, as put by Shaughnessy, depends on the various factors such as the nature of the project they want to undertake, the objectives of the parties, the risks involved and the scale of operations. There are five main types of collaborations used by organizations in the modern world, informal agreements, strategic alliances, strategic partnerships, joint ventures as well as revenue and risk sharing partnerships. These are informal agreements characterized by the employment of little legal structures. They mostly involve verbal agreements between the boards of management of the two parties and usually, involve short-term agreements in projects that will last for a short period. Here, the number of risks faced by the members is reasonably low and thus, the establishment of the agreements base on mutual trust between the parties involved. However, in some conditions, very long lasting collaborations and joint business operations can operate in this manner. This type of collaboration involves organizations that lack any substantial degree of ownership and work jointly to gain mutual benefit in a strategically important relationship. Being mere relationships rather than specific inter-organizational structures, strategic alliances lack a well-defined legal form. The alliances align suitably, to the goals and objectives of the organizations involved. In strategic alliances, the partners preserve their autonomy but there is an existence of mutual dependency that aims at pooling their resources together and assist each other in dealing with the challenges posed by the market.