HOW TIGHT AN EMBRACE? CHOOSING THE OPTIMAL DEGREE OF PARTNER INTERACTION IN ALLIANCES BASED ON RISK, TECHNOLOGY CHARACTERISTICS, AND AGREEMENT PROVISIONS.

Farok J. Contractor, James A. Woodley

Academy of Management Proceedings · 2008 · 11 citations · 0 references

Concepts

Abstract

The article discusses the question of what types of business alliances are least costly, least risky, and best for value creation. It is argued that governance structures are selected to facilitate interaction between organizations. This influences topics such as trust, control, and commitment. Partner interaction is said to be particularly significant in the study of technology alliances which cross borders. Protecting the firm against potential future competition while sharing necessary information is described as a difficult balancing act.