Take the guesswork out of business relationships

26.03.2011

“Firms with high technological turbulence and rapid developments in technology, such as the cellular phone industry, are more likely to use constructive strategies in their relationships, where they work together with their partner to deal with technological change,” he said.

“Whereas competitive intensity, where firms heavily compete with each other, breeds uncertainty and partners are less inclined to work together.”

Professor Tjemkes recommends managers recognise the different types of responses, which are characterised by a different degree of activeness, passiveness, destructiveness and constructiveness.

“Personality matters,” he said. “Perhaps you need to hire alliance managers who are risk-prone because your alliance has outlived its usefulness.”

He is quick to point out, however, that this is just a piece of the puzzle, and that companies must invest in developing high-quality relationships.