The Two Facets of Collaboration

Ranjay  Gulati; Franz  Wohlgezogen; Pavel  Zhelyazkov

Article | Academy of Management Annals | 2012

The Two Facets of Collaboration: Cooperation and Coordination in Strategic Alliances

by Ranjay Gulati, Franz Wohlgezogen and Pavel Zhelyazkov

Abstract

This paper unpacks two underspecified facets of collaboration: cooperation and coordination. Prior research has emphasized cooperation, and specifically the partners' commitment and alignment of interests, as the key determinant of collaborative success. Scholars have paid less attention to the critical role of coordination—the effective alignment and adjustment of the partners' actions. To redress this imbalance, we conceptually disentangle cooperation and coordination in the context of inter-organizational collaboration, and examine how the two phenomena play out in the partner selection, design, and post-formation stages of an alliance's life cycle. As we demonstrate, a coordination perspective helps resolve some empirical puzzles, but it also represents a challenge to received wisdom grounded in the salience of cooperation. To stimulate future research, we discuss alternative conceptualizations of the relationship between cooperation and coordination, and elaborate on their normative implications.

Keywords: Alliances; Social and Collaborative Networks; Cooperation;

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Gulati, Ranjay, Franz Wohlgezogen, and Pavel Zhelyazkov. "The Two Facets of Collaboration: Cooperation and Coordination in Strategic Alliances." Academy of Management Annals 6 (2012): 531–583.

Why do some startups that have crossed the threshold of “product-market fit” and have a viable business model still fail? This article begins by exploring the argument that most startups need more professionalization to thrive. Founders resist putting in place structures and systems as they grow and that eventually leads to organizational chaos and ultimately, failure. But it then departs from this conventional view and explores the idea that while on the one hand too little structure in a high growth venture can lead to chaos, going too far on the other extreme with too much structure can also be equally detrimental and kill the soul of the startup. The article concludes by summarizing some ideas for startup founders on how they can learn the mechanics of scaling up effectively before they reach a point where they tip over too far, in one direction or the other. In an attempt to better understand this problem, the authors conducted a closed-group discussion with professionals, investors, and founders operating in various segments of the Indian startup ecosystem on which this article is based.

Novartis' Genesis Labs program, launched in 2016 as part of Novartis Institutes for Biomedical Research (NIBR), hosted pitch competitions where teams of NIBR scientists proposed ideas to explore that aimed to revolutionize drug discovery. The goal was to break down barriers between functions and regions that slow innovation. After advancing to the pitch stage, a panel selected a handful of winning proposals. Winning teams left their roles for 18 months and received the resources and laboratory space to pursue their ideas. By 2018, two cohorts of winners had been selected—one almost at the end of its 18-month tenure and the other soon to begin. Genesis Labs had already overcome several hurdles—for example, scientists at first worried that stepping out of their ordinary role or pitching ideas that were not chosen could end their careers at Novartis. Though the Genesis Labs program ultimately succeeded in attracting many candidates, the company wondered how to further refine it to foster greater agility in Novartis R&D. Should they expand the call for entries? Did it encourage true shoot-the-moon ideas? How often should the program run, and how disruptive should it be to existing teams? What was the best way to reintegrate scientists to prior roles after their 18-month stint as part of Genesis Labs was over? Finally, could such contests be adapted and rolled out in other functions in the organization?

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The Two Facets of Collaboration: Cooperation and Coordination in Strategic Alliances

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