Factor Analysis and Small Scale Entrepreneurs
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CHAPTER V
PARTNER-FIRM SELECTION PROCEDURE
5.1 INTRODUCTION
The selection of a more amicable symbiotic partner-firm requlres accentuated care for two important factors. Primarily, the partner-firm 'influences the resources and skills" which will be available for the joint util~zation by the participating firms. Secondarily, the selected partner-firm should o ,~ not exh~bit p p o r t ~ n i s mas well as the tendency to exploit the power
Imbalance that may arise in Symbiotic agreements. The ability of a flrm to effect the success of the other partner-firm is another implicit reason that amplifies the need for a scientific approach In selecting the proper partner-firm. But, the absence of a systematic approach, with in-built pragmat~smfor selecting a symbioticf~rm,isquite conspicuous.
The objective of the current chapter is to develop a model that aids the pract~cing
Small Scale Entrepreneurs in selecting the most sultable partner-f~rm. is achied by presenting and analyzing the data collected
It
from the respondents in respect of partner-firm selection. In the process, the various selectron criteria are factor analyzed to understand the broader dimensions underlying these selection criteria. Initially, the
1.
2.
Gerlnjer J M., 1991 Op cit. Po. 42
Gronhaug K., 1990. Op. cit Pg 542
chapter presents a brief discussion on the various steps involved in the selection process like identifying alternatives, reliability of different sources of information, mode of approaching the other firms, their perceptions towards relativity in regard to the benefits accrued, the importance of the activity, and the degree of mutual dependence.
It continues to discuss the method of Factor analysis conducted for the data on the selection criteria and the results of the analysis. The chapter concludes by presenting a model for operationalising the partner-firm selection white effecting Symbiotic Marketing agreements.
5.2 PARTNER-FIRM
CHAPTER V
PARTNER-FIRM SELECTION PROCEDURE
5.1 INTRODUCTION
The selection of a more amicable symbiotic partner-firm requlres accentuated care for two important factors. Primarily, the partner-firm 'influences the resources and skills" which will be available for the joint util~zation by the participating firms. Secondarily, the selected partner-firm should o ,~ not exh~bit p p o r t ~ n i s mas well as the tendency to exploit the power
Imbalance that may arise in Symbiotic agreements. The ability of a flrm to effect the success of the other partner-firm is another implicit reason that amplifies the need for a scientific approach In selecting the proper partner-firm. But, the absence of a systematic approach, with in-built pragmat~smfor selecting a symbioticf~rm,isquite conspicuous.
The objective of the current chapter is to develop a model that aids the pract~cing
Small Scale Entrepreneurs in selecting the most sultable partner-f~rm. is achied by presenting and analyzing the data collected
It
from the respondents in respect of partner-firm selection. In the process, the various selectron criteria are factor analyzed to understand the broader dimensions underlying these selection criteria. Initially, the
1.
2.
Gerlnjer J M., 1991 Op cit. Po. 42
Gronhaug K., 1990. Op. cit Pg 542
chapter presents a brief discussion on the various steps involved in the selection process like identifying alternatives, reliability of different sources of information, mode of approaching the other firms, their perceptions towards relativity in regard to the benefits accrued, the importance of the activity, and the degree of mutual dependence.
It continues to discuss the method of Factor analysis conducted for the data on the selection criteria and the results of the analysis. The chapter concludes by presenting a model for operationalising the partner-firm selection white effecting Symbiotic Marketing agreements.
5.2 PARTNER-FIRM