Posts

Showing posts with the label knowledge clusters

The Competitive Benefits of Business Collaboration

Image
Organizations collaborate for a number of reasons that range from necessity to strategic enhancement. Smaller organizations may collaborate to develop stronger responses to collective problems (Sowa, 2009) while larger organizations collaborate with smaller organizations to incorporate new competencies. Collaboration is an exercise of hedging the different knowledge and skills of each organization to compete together on the global market.  Without collaboration businesses may suffer for a lack of resources and abilities to meet new market pressures. Organizations collaborate due to internal and external drivers resulting from changes in the environment (Yankey & Willen, 2005). These organizations do not have the current internal or external abilities to meet the new demands of global change. Collaboration gives them an opportunity to work together to face market pressure (external drivers) or share abilities and knowledge to lower operational costs (internal drivers).