The 17 PROPAT Characteristics
- A willingness to change and take risks
- Acceptance of interdependence
- Trust
- Seeking absolute not relative advantage
- Long-term Commitment
- Capacity to learn
- Communication
- Coordination
- Flexibility
- Objective self assessment
- Active membership in social networks
- Awareness about alliances
- Ability to resolve conflict
- Patience
- People before structure
- Loyalty to existing members
- Thrift
- <<Back to PROPAT in Detail<<
Business partnerships - the sum of the parts
Seeking absolute not relative advantage in business partnerships
One important characteristic for the formation of successful business partnerships is the ability of the entrepreneur to focus on absolute advantage, rather than relative advantage (Roessl 2005).
Rather than the benefits and advantages accruing to one business partner in relation to the other what is important is the advantages gained by the firm through cooperation compared to its situation before the alliance. Focusing on the relative advantage of one business partner will hinder the cooperation arrangement and potentially reduce the absolute gains derived by both business partners. Business partners may 'win' in cooperation arrangements even if they enjoy fewer advantages in relation to the other party.