Between trust and control: developing confidence in partner cooperation in alliances
Article Abstract:
Strategic alliance have been recognized as arenas with potential for opportunistic behavior partners. Hence, a firm needs to have an adequate level of confidence in its partner's cooperative behavior. In this article we examine the notion of confidence in partner cooperation in alliances and suggest that it comes from two distinct sources: trust and control. We make the argument that trust and control are parallel concepts and that their relationship is of a supplementary character in generating confidence. In addition, we suggest that control mechanisms have an impact on trust level and that the trust level moderates the effect of control mechanisms in determining the control level. Finally, we discuss various ways to build trust within strategic alliances and important alliance control mechanisms. (Reprinted by permission of the publisher.)
Publication Name: Academy of Management Review
Subject: Business, general
ISSN: 0363-7425
Year: 1998
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Constructive partnerships: When alliances between private firms and public actors can enable creative strategies
Article Abstract:
A study argues drawing on transaction cost economies and externalities theory that private public partnerships would be necessary when economic opportunity realization calls for industry-specific competencies but entails significant positive externalities, is covered by high uncertainty for the private actors, and necessitates for private actors high governance costs for contracting, coordinating and enforcing. Specialized resources, positive externalities, uncertainty, and governance costs are all the costs that are jointly implicated in the theory.
Publication Name: Academy of Management Review
Subject: Business, general
ISSN: 0363-7425
Year: 2006
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