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Outsourcing Innovation
In March of 2012, Boeing agreed to collaborate with China's Comac, which is actually something of a rival to Boeing in the commercial aerospace market (Toh, 2012). They partnered in an effort to curb the aviation industry's contribution to climate change. This is a classic example of a partnership formed to stimulate and manage innovation outside the boundaries of any given firm. This first partnership between Boeing and Comac aims to develop a single-aisle passenger aircraft. Boeing is partnering with a rival to challenge a market in which it already enjoys a significant advantage.
In your research, consider how organizations should exercise care when implementing alliances that produce innovation without harming the competitive standing of the alliance partners.
With these thoughts in mind:
Read the Ajax Minerals exercise and the Problems at Perrier case study of the Palmer textbook.
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