Featured Research

from universities, journals, and other organizations

Collaboration Is A Competitive Advantage

Date:
November 25, 2008
Source:
BI Norwegian School of Management
Summary:
Two Norwegian high-technology companies took a chance on a collaboration to exploit each others' competence more effectively -- with good results, shows a doctoral thesis from BI Norwegian School of Management.

Two Norwegian high-technology companies took a chance on a collaboration to exploit each others' competence more effectively – with good results, shows a doctoral thesis from BI Norwegian School of Management.

“Production costs were cut in half, better performance and shorter development time were achieved,” observes Fahad Awaleh in his doctoral thesis.

The electronics industry has experienced explosive development over the past few years. Strong market growth and increased globalisation have changed the rules of the game.

This has intensified international competition for Norwegian high-technology export companies.

They operate in a world of frequent takeovers and mergers.

It has also become increasingly common to outsource all or some of production to low-cost countries.

Often, international competitors have significant advantages associated with access to cheaper labour and generally more favourable local conditions.

The Key to Increased Competitiveness

“How in the world can Norwegian high-technology companies deal with increased competition from global and international actors?” asks Fahad Awaleh in his doctoral thesis from BI Norwegian School of Management.

According to Awaleh, the key to increased competitiveness is to find smarter ways to manage logistics and purchasing in the process of developing and producing new products.

These costs can represent as much as 70 to 80 per cent of total production costs.

“Product developers and producers must find solutions that lead to winning designs and technological advantages, while also maintaining adequate control over production costs,” maintains Fahad Awaleh.

Norwegian high-technology companies and competence organisations can achieve this by taking a fresh look at how they collaborate, both as customers and suppliers.

Productive Collaboration

Fahad Awaleh has, in his doctoral thesis from BI Norwegian School of Management, conducted a study of collaboration projects between Kongsberg Defence and Communication and Kitron, which are two leading Norwegian electronics companies.

Kongsberg Defence and Communication and Kitron have, over the course of several years, collaborated on developing and producing radios and advanced communications equipment. The Kongsberg company develops new product concepts, while Kitron is responsible for production.

These two companies established a collaboration project where both were prepared for radical changes in the way they collaborated on the development and production of new products.

“Confronting well-established work methods is no joke. It means challenging each others' competence, dropping preconceived notions about each other, and showing each other openness and trust,” emphasises Awaleh.

“The object was to exploit each others' competence in the best possible way,” says Awaleh.

Cheaper, Faster and Better Products

The BI researcher followed the two company’s efforts to work together in new ways over a period of four years.

Awaleh shows how the two parties managed, over time, to develop a common strategy for developing their relationship and collaboration in a direction that made both companies better able to achieve both their individual and common goals.

The companies took a chance testing new collaboration routines and delegation of responsibility in a new industrialisation project, and were willing to make mistakes.

The journey toward a smarter way of working has given both companies a competitive advantage.

Together, Kongsberg Defence and Communication and Kitron are in a position to produce radios and other advanced mutations equipment with increased technological performance, better functionality, and at half the production cost. At the same time, both companies have preserved their individual goals and needs.

Fahad Awaleh defended his doctoral thesis, “Interacting Strategically within Dyadic Business Relationships – A case study from the Norwegian Electronics Industry”, at BI Norwegian School of Management, October 10, 2008.


Story Source:

The above story is based on materials provided by BI Norwegian School of Management. Note: Materials may be edited for content and length.


Cite This Page:

BI Norwegian School of Management. "Collaboration Is A Competitive Advantage." ScienceDaily. ScienceDaily, 25 November 2008. <www.sciencedaily.com/releases/2008/11/081124081200.htm>.
BI Norwegian School of Management. (2008, November 25). Collaboration Is A Competitive Advantage. ScienceDaily. Retrieved July 22, 2014 from www.sciencedaily.com/releases/2008/11/081124081200.htm
BI Norwegian School of Management. "Collaboration Is A Competitive Advantage." ScienceDaily. www.sciencedaily.com/releases/2008/11/081124081200.htm (accessed July 22, 2014).

Share This




More Science & Society News

Tuesday, July 22, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

What Self-Made Women Need to Know Financially Before Getting Hitched

What Self-Made Women Need to Know Financially Before Getting Hitched

TheStreet (July 21, 2014) Halle Berry was recently ordered to pay her ex-boyfriend Gabriel Aubry $16,000 a month in child support by a California judge for their daughter Nahla. As women make strides in the workforce, they are increasingly left holding the bag when relationships end regardless of marital status. 'What Monied Women Need to Know Before Getting Married or Cohabitating' discusses information such as debt incurred during the marriage is both spouse's responsibility at divorce, whether after ten years of marriage spouses are entitled to half of everything and why property acquired within the marriage is fair game without a pre-nup. Video provided by TheStreet
Powered by NewsLook.com
$23.6 Billion Awarded To Widow In Smoking Lawsuit

$23.6 Billion Awarded To Widow In Smoking Lawsuit

Newsy (July 20, 2014) Cynthia Robinson claims R.J. Reynolds Tobacco Company hid the health and addiction risks of its products, leading to the death of her husband in 1996. Video provided by Newsy
Powered by NewsLook.com
Clock Ticks Down on Internet Speed Debate

Clock Ticks Down on Internet Speed Debate

Reuters - US Online Video (July 18, 2014) The FCC received more than 800,000 comments on whether and how internet speeds should be regulated, even crashing its system. Lily Jamali reports. Video provided by Reuters
Powered by NewsLook.com
Raw: Wildfire Tears Through Washington

Raw: Wildfire Tears Through Washington

AP (July 18, 2014) A large wildfire continued to gain steam through north-central Washington Friday. The blaze is already responsible for the destruction of at least 100 homes. (July 18) Video provided by AP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins