Partnership and Collaboarative Working

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Partnership and Collaborative working
Edward James Bourke

Module number: BE0964
Module tutor : Glenn Steel
MSc. Project Management
Northumbria University
Module number: BE0964
Module tutor : Glenn Steel
MSc. Project Management
Northumbria University

Table of Contents
1.0. Executive Summary3
2.0. Critical Analysis of the LoJack-MircoLogic alliance4
2.1. Relational Actors4
2.2. Relational Objectives5
2.3. Relational Factors6
2.4 Relational Arrangements7
3.0 Was the strategic alliance a success of failure?7
3.1. Leadership7
3.2. Trust8
3.3. Learning8
3.4. Managing performance9
4.0 Private sector vs. Public sector alliances.9
4.1. Barriers to effective public sector partnerships10
4.2. Importance of trust10
5.0. Conclusions11
6.0. Appendices12
7.0. References13

1.0. Executive Summary
There are numerous contributing factors that define why an alliance will be created whether within the private or public sector. The case study of LoJack-MicroLogic will be analysed in reference to the private sector to determine whether it can be deemed a success or failure. Relevant frameworks and concepts will be utilised to help make a judgement that will be enforced by various academic theory. Even with the distinct differences that can be indentified when comparing the private with public sector alliances, one similarity will always be present and that is the concept of synergy. As an idea it is something all alliances will hope to achieve, in producing a performance that would not be attainable individually. It is clearly evident in the LoJack-MicroLogic case study but also apparent in public sector examples studied. The analysis of the case study has showed that the LoJack-MicroLogic alliance was a success. However the relationship did begin to deteriorate as LoJack became more accomplished and the balance of power began to shift in their favour. It is evident that LoJack had gained an extensive amount of knowledge with regards to technical expertise from the alliance, thus making MicroLogic position under threat. A strong relationship was established between both companies ensuring that any future alliance would be given considerable weight because of their past experience working together. It is difficult to forge a trusting relationship in the private sector due to the number of influences that can impact decisions and consequently change strategic focus. What arguably can be contributed to this successful relationship is that it was built up from the beginning when there were no ego’s present or conflicting stakeholders but just individuals who saw the potential in an idea and wanted to ensure its success. A public sector alliance can often be hindered by the same characteristics present within the private sector. Power, mistrust and leadership will impact how collaborations will work together regardless of what industry they operate in. When you remove the profit factor then the similarities will be quite distinctive.

2.0. Critical Analysis of the LoJack-MircoLogic alliance
Kauser & Shaw (2004) define strategic alliances as contractual agreements between two or more parties who work together toward a common objective whilst remaining independent from one another. The LoJack-MicroLogic alliance was an ‘indirect horizontal relation’ meaning neither company operated within the same industry. Kauser & Shaw clearly acknowledge that an alliance can be multilateral and bilateral in their arrangement, and in the LoJack-MicroLogic alliance both examples of collaborative arrangements are present. In the context of the LoJack-MicroLogic alliance, both parties had something to gain from one another. Initially there was no LoJack system but only a concept which required development. MicroLogic assumed the position of product development and implementation of the design to create an effective...
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