How to Resolve Conflict in Strategic Alliance: A Cognitive-Map-Based Approach

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1 How to Resolve Coflict i Strategic Alliace: A Cogitive-Map-Based Approach Tao Zhag ad Yapig Liu School of Ecoomics ad Maagemet, Beijig Jiaotog Uiversity, Beijig100044, P.R. Chia emasse@126.com mf001455@263.et Abstract. With the busiess eviromet become more complex ad dyamic, orgaizatios have bee faced with more pressures of competitio. Orgaizatios are ofte compelled to form strategic alliaces with other orgaizatios to survive ad prosper. The iter-orgaizatioal arragemet ca become favorable seedbed for iter-orgaizatio coflict. The participats i the strategic alliace ofte sped a substatial proportio of time ad eergy to hadle coflict situatios ad realize collaboratio. The effectiveess of the efforts depeds o their comprehesio o the characteristics of coflict, but it is ofte difficult for relative participats i coflict to uderstad cogitively coflict situatio ad maage it efficietly. Cogitive map ca represet coceptual causal relatioships betwee differet variables, so it ca be used to describe the perceptios of participats about the subjective coflict situatio. I this paper, we itroduce a method based o NPN logic cogitive map to capture ad resolve strategic alliace coflicts. Keywords: Strategic alliaces, NPN logic, Cogitive map, Coflict resolutio 1. INTRODUCTION With the busiess eviromet become more complex ad dyamic, orgaizatios have bee faced with more pressures of competitio. Orgaizatios are ofte compelled to form strategic alliaces with other orgaizatios to survive ad prosper. The iter-orgaizatioal arragemet ca brig some advatages to participats i alliace such as access of importat resources, kowledge creatio, ad risk sharig etc, but it ca also become favorable seedbed for iter-orgaizatio coflict. Moderate coflict is cosidered ecessary for the efficiecy ad effectiveess of strategic alliace, but itese coflict ca produce egative residues, eve udermie the basis of strategic alliace. Therefore, coflict maagemet ad resolutio i strategic alliace is of sigificace o the success of strategic alliace. Coflict i strategic alliace is a process i which oe parterig orgaizatio perceives that its iterests are opposed or egatively affected by aother parterig orgaizatio. The participats i strategic alliace ofte sped a substatial proportio of time ad eergy to hadle coflict situatios ad realize collaboratio. The effectiveess of the efforts depeds o their comprehesio o the characteristics of coflict, but it is ofte difficult for relative participats i coflict to uderstad cogitively coflict situatio ad maage it efficietly. Cogitive map (CM) ca

2 400 Tao Zhag ad Yapig Liu represet coceptual causal relatioships betwee differet variables, so it ca be used to describe the perceptios of participats about the subjective coflict situatio. Through cogitive maps costructio, parterig orgaizatios i strategic alliace ca idetify the cause-effect relatioships related to coflict situatio, ad the they ca uderstad each other better ad trasform their opiios ito collective syergy. I this paper, we itroduce a method based o egative-positive-eutral (NPN) logic cogitive map to capture ad resolve strategic alliace coflicts. The remaiig sectios are orgaized as follows. We first itroduce NPN logic which costructs a logical framework for cogitive map modelig, ad the cocepts of NPN logic cogitive map. The we describe a geeric method to detect ad resolve coflict i strategic alliace. Ad i the ed, we propose the maagerial implicatios ad a idetificatio of aveues for future research. 2. LITERATURE REVIEW I this part, we will itroduce NPN fuzzy logic which costructs a logical framework for cogitive map modelig, ad the preset geeral cogitive map cocept ad NPN logic cogitive map cocept. I NPN fuzzy logic, a sigleto variable ca assume ay real value i the iterval[ 1,1], or it ca be assumed a ordered NPN value pair ( x, y ), where x ad y assume real values i [ 1,1], which idicates a egative stregth ad a positive stregth simultaeously cosidered. Sice each sigleto value x ca also be represeted as a pair ( x, x ), ay NPN logic value ca be represeted as a ordered pair. Thus the ordered pairs (by ) i[ 1,1] [ 1,1] form a complete represetatio space for all NPN logic values. A NPN relatio R i X Y was defied as a collectio of ordered pairs or a subset of X Y characterized by a membership fuctio that associates each R pair ( x, y ) i X Y with stregth of relatioship by usig a NPN logic value. A i i NPN relatio R i X X, where X { x 1, x 2 x }, is NPN max trasitive if, for all i, j, ad k, 0 i, j, k we have ( x, x ) max( ( x, x ) ( x, x )). (1) R i k R i j R j k I (1), the operator stads for a geeral cojuctio operator that may be ay T- orm exteded from the iterval[0,1] to[ 1,1]. The max compositio of two NPN relatios R X Y ad Q Y Z, deoted by R Q, is defied by max( ( x, y) ( y, z)), x X, y Y, z Z. (2) RQ R Q The operator max is equivalet to OR. The -fold compositio of R is deoted as R R R R. A max trasitive closure of a NPN relatio R i X X is

3 How to Resolve Coflict i Strategic Alliace: A Cogitive-Map-Based Approach 401 defied as the smallest max NPN trasitive relatio cotaiig R. A theorem proved states: give X { x 1, x 2 x } fiite set, the max trasitive closure R of a NPN relatio R i X X exists ad ca be computed as R R R ( R R ) ([ I] ( R R )) [1]. (3) Cogitive Map is a clear represetatio of the causal relatioships that are perceived to exit amog the attributes ad/or cocepts of a give eviromet [2]. It comprises odes that represet the crucial factors most relevat to the decisio circumstaces, ad arcs that idicate differet causal relatioships amog factors. CM has bee widely used for kowledge acquisitio ad processig i differet disciplies ad research domais where both the system cocepts ad relatioships are basically complex. Whe the relatioships are umerically characterized, the CM approach is a iferece mechaism that allows the complex causal relatios amog factors to be idetified ad their impact to be costructed. The causal relatioships are ofte idicated through weighted directed coectios preseted i two-valued logic or classical fuzzy logic which has iteral deficiecies metioed above i assessig the impact of positive ad egative causalities whe stimuli are exerted o oe or more elemets i a CM. I NPN logic CM, all the stregths of the relatioships ca be ormalized to real value pair ( x, y ) i[ 1,1], so both egative ad positive effects ca be retaied ad itegrated i the decisio aalysis for further referece. 3. COGNITIVE-MAP-BASED METHOD FOR CONFLICT RESOLUTION IN STRATEGIC ALLIANCE Four processes compose the cogitive-map-based model for coflict resolutio i strategic alliace, that is, goal idetificatio, cogitive map compositio, cogitive derivatio ad decisio aalysis process. I the goal idetificatio process, parterig orgaizatios i strategic alliace cofirm the commo expected goals of strategic alliace. Based o the uiform goals, each parterig orgaizatio costructs the local cogitive map respectively to gather structured iformatio about ow preset operatioal situatios. The gathered iformatio is pooled together by itegratig assertios ad local cogitive maps to form a combied cogitive, which is called a primary cogitive map (PCM). I the cogitive map derivatio process, max heuristic trasitive closure, which ca be used to idetify the maximum causalities betwee ay two cocepts i PCM, is derived as a advaced CM (ACM) i which implicatios ad icosistecies of PCM are clarified. Based o ACM, two most effective casual paths, which cause, respectively, a positive ad a egative maximum effect, ca be cofirmed. I decisio aalysis process, several strategic alliace coflicts are idetified based o the computed causal impact paths ad values ad some approaches for coflict itervetio ad resolutio ca be preseted. Strategic agreemet o the overall goals of the alliace is a strog foudatio for a supportive overall collaborative eviromet. Goals structured i strategic alliaces determie that parterig orgaizatios iteract ad their iteractio patter

4 402 Tao Zhag ad Yapig Liu determies outcomes. Whe commo goals idetified, parterig orgaizatios ca develop the cogitio of cooperative iterdepedece which will cotribute to logterm relatioships. I goal idetificatio process, commo goals descriptios are determied i strategic alliace. While commo goals have bee idetified, parterig orgaizatio i strategic alliaces has idividual ad diverse goals which are ofte i coflict with the goals of other parterig orgaizatios. Coflict i strategic alliaces ca be described as the iter-orgaizatioal behavior that occurs whe oe parterig orgaizatio perceives that other parterig orgaizatios couteract its goal achievemet ad expectatio. There are may techiques which ca be used to determie ad validate the commo goals descriptios of strategic alliace such as braistorm, iterview, ad documet aalysis. I this process, 2-3 cocepts represetig commo goals are determied. Cogitive map costructio ca be regarded as a kowledge poolig process [1]. I this process, differet maagers schema or cogitive structures, which reflect their metal uderstadig of a particular domai, is itegrated to form a combied PCM. The importace of kowledge poolig lies i the fact that o oe has perfect ad complete kowledge about a large ad distributed eviromet [2]. The costructio of PCM icludes several phases as follows. First, the appropriate sample size is determied, ad the iitial structured iterview with maagers at differet levels i parterig orgaizatios is coducted. Secod, causal cocepts are idetified ad clustered, ad adjacecy matrices are completed based o pairwise compariso or structural equatio modelig techique. Third, idividual cogitive maps are augmeted ad itegrated together to form local cogitive maps of parterig orgaizatios based o the idetical causal cocepts betwee idividual cogitive maps. At last, global PCM based o the idetical causal cocepts betwee local cogitive maps is geerated. I cogitive map compositio process, both positive ad egative assertios are weighted ad kept separately to form a NPN compoud value. Because both positive ad egative effects are importat i decisio aalysis, they should ot be summed together if they are ot couteractive to each other at the same time or they are ot caused by the same path. I the cogitive map derivatio process, max heuristic trasitive closure is derived as ACM i which implicatios ad icosistecies of PCM are clarified. I this process, two algorithms suggested i [1] ca be adopted, that is, a heuristic trasitive closure (HTC) algorithm ad a heuristic path searchig (HPS) algorithm. The HTC algorithm implemets logic arithmetic metioed above, which computes the heuristic trasitive closures of NPN relatios. The HPS algorithm cofirms two most effective casual paths, which cause a positive ad a egative maximum ripple causalities effect. If the positive path is desirable, the egative path will cause the maximum side effect, ad vice versa. HTC ad HPS algorithm ehace the coherece i PCM ad clear up implicatios amog PCM ode coectios. I PCM, there are may urelated object pairs ad may pairs which are related oly by either a egative or positive edge. The HTC algorithm completes the PCM via trasitivity, ad the HPS algorithm elicits the ew relatioship betwee object pairs. The the pieces of partial kowledge i the PCM are itegrated ad the ew relatioships are derived based o overall coherece ad completeess i the max trasitive sese.

5 How to Resolve Coflict i Strategic Alliace: A Cogitive-Map-Based Approach 403 I decisio aalysis process, The elemets of R is regarded as a more or less steady state which idetifies etwork expectatios o the effects caused by stimuli, ad the ca be used to guide a dyamic decisio process util oe or more goals are reached. Through this way, several coflicts betwee parterig orgaizatios ca be idetified based o the computed causal impact paths ad values. Furthermore, the maximum causality factors i a closure, which preset the coflict situatios betwee parterig orgaizatios, ca be used as the criteria for fidig the most effective paths correspodig to some potetial solutios. The major advatage i usig NPN relatios lies i the fact that both positive ad egative causalities are retaied i the model. The itegrated represetatio ca be used to support multi-criteria decisio aalysis ad the reaso about the potetial cosequeces of a actio by a parterig orgaizatio. Based o the represetatio, alterative solutios to coflict situatios ca be arraged i the order as follow: the most effective oes with least side effects, the least effective oes with least side effects, the least effective oes with the most side effects ad the oes with both maximum effects ad side effects [2]. 4. CONCLUSIONS AND IMPLICATION This article proposed a cogitive map method to aalyze the coflict i strategic alliace based o the NPN logic which ca represet both positive ad egative causalities simultaeously. The method comprises four processes for coflict resolutio i strategic alliace, that is, goal idetificatio, cogitive map compositio, cogitive derivatio ad decisio aalysis process. There are some implicatios i this method for the practitioers ad researchers who iterest i coflict resolutio i strategic alliace. Primarily, the method ca help to facilitate the idetificatio of the causal iteractios i parterig orgaizatios i strategic alliace. Secod, the method ca elimiate the ambiguity i parterig orgaizatios o the sources of coflict ad the ways of resolutios. However, there are still several limitatios i the method. Whereas this article suggests a pairwisecompariso-based techique ad/or structural equatio modelig techique i causal values cofirmatio, the appropriateess of these approaches still remais to be further examied. I additio, the method does ot cosider the cause-effect relatioships with time dimesio betwee iterrelated causal cocepts. Hece, oe of the future directios of this research is to represet the time dimesio i the iterrelated causal cocepts. REFERENCES 1. W. Zhag, S. Che, W. Wag, ad R. S. Kig, A cogitive-map-based approach to the coordiatio of distributed cooperative agets, IEEE Trasactio o System, Ma, ad Cyberetics. Volume 22, Number 1, pp , (1992). 2. W. Zhag, S. Che, ad J. C. Bezdek, POOL2: a geeric system for cogitive map developmet ad decisio aalysis, IEEE Trasactio o System, Ma, ad Cyberetics. Volume 19, Number 1, pp.31-39, (1989).

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