How Innovative Companies Collaborate

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All in all, the three cycled through 11 collaborations – but importantly, they did not plan more than one or two pairings in advance. The agreed-upon cycling framework allowed the partnership to grow organically without being hemmed in by a rigid twosome or threesome arrangement.

Keeping the Faith

For cycling to work, of course, a good-faith atmosphere has to prevail among all partners in the group. In my study, the particular culture of Silicon Valley was certainly pertinent: Due to the nature of the tech industry and the positions of the firms involved, all the collaborators could be fairly sure they would have future opportunities to work together. This made them feel confident in agreeing to sit out a cycle for the greater good of the partnership.

This ability to take the long view rather than fixate on short-term objectives may mark the difference between sturdy and shaky collaborations. And that difference may make all the difference when it comes to innovation. Trust, after all, is essential in any business arrangement, but a genuine spirit of togetherness in a small group – even among companies whose strategic interests may at times conflict – is a different thing altogether, and can pay huge dividends.

This article was originally published at INSEAD Knowledge.

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