Q: Briefly describe the changing characteristics of inter organizational relationship.

Traditional Orientation: Adversarial Suspicion, competition, arms length New orientation: Partnership Trust, addition of value to both sides, high commitment. Price, efficiency, own profit Equity, fair dealing, both profit Limited information & feedback Electronic linkages to share key information, problem feedback & discussion. Minimal involvement & up-front investment, Involvement in partners product design & separate resources production, shared resources Short term contracts Long term contracts Contract limiting the relationship Business assistance beyond the contract

Many companies are changing from a traditional adversarial mindset to a partnership orientation. The new model is based on trust and the ability of partners to develop equitable solutions to conflicts that certainly arise. Managing strategic relationships with other firms has become a critical management skill. The new model is characterized by lots of shared information, including economic linkages for automatic ordering & face-to-face discussion to provide corrective feedback and solve problems. For example, AMP, a manufacturer of electronic & electrical connectors, was contracted by a customer about a broken connector that posed serious problems In this new view of partnerships, dependence on another company is seen to reduce rather than increase risks. Greater value can be achieved by both parties.