Economic Review, Vol. 53 No. 7-8, 2002.
Preliminary communication
COOPERATION OF COMPETITIVE FIRMS WITH COMPLEMENTARY RESOURCES-BUSINESS STRENGTH FROM THE GAME THEORY PERSPECTIVE
Robert Fabac
Abstract
In the competitive environment, firms that have more business strength achieve increased profits and have bigger development potential. Evaluating the level of accessible company resources and organization capabilities does assessment of business strength. One way to improve resources base and develop a competitive advantage is by entering into alliances or coalitions with other companies. Nowadays, strategic cooperation is widespread in business practice. Through the learning process in alliances, companies accomplish transfer of intangible resources and capabilities, causing the growth of business strength as a function of resources. Game theory, which utilizes two important concepts of power index and utility function, makes possible to analyze the change of business strength caused by entering coalitions. Beside a traditional approach toward business strength definition, we propose new approaches to assess company competitiveness and success potential. Two notions are important: “network business strength” (NBS) and “cooperative strength index” (CSI). The procedure that determines these indicators is based on models of cooperative game theory and the Shapley value concept.
Keywords
Hrčak ID:
28374
URI
Publication date:
15.8.2002.
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