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
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Business risk aversion and resistance to change...
A willingness to change and take risks
The reasons most commonly cited for resistance to change revolve around self-interest, lack of understanding and trust, uncertainty and different views regarding the expected result produced by change. At the most rudimentary level people resist change on the grounds of perceived loss, be it loss of stability, expertise, relationships or understanding (Kimberling, 2002).
Cooperation requires a critical examination (or even discrediting) of current fundamental attitudes, behaviours and current procedures as well as a willingness to change accordingly (Roessl, 2005). It requires, for example, a change in mindset to focus on absolute rather than relative advantage, and the need to take a longer-term perspective of business performance.
Most business decisions represent a step into the unknown and a thus a degree of risk. In the case of alliances this business risk is somewhat exacerbated by the uncertainty surrounding the behaviour of a third party and the effect that this behaviour can have on the alliance and the future of the business. Alliance partners face the risk of losing contributions invested in the cooperation (Heide, 1994) and the possibility that their trust could be exploited by the other party. In addition, in cooperation arrangements where power is unequally distributed, the weaker partner risks having to succumb to additional or unreasonable demands by the stronger party.
Alliances, therefore, are not an attractive option for the risk-averse entrepreneur. Furthermore, alliance formation requires a willingness to change and take risks, i.e. a proactive rather than a reactive approach to change. For an alliance to be formed it must be viewed as an opportunity which motivates the entrepreneur to seek change proactively without undue fear of risk to the business.