Explanation of Reciprocal Trust & Partner Competency on Endurance of Strategic Alliances
Subject Areas :
1 - University of Tehran
2 - مديريت بازرگانی دانشگاه شهيد بهشتی تهران
Keywords: Strategic Alliances Alliance Endurance Alliance Life Time Trust Competency,
Abstract :
Most strategic alliances are failing to reach to their goals and for a variety of reasons are collapsed. Hence, it is important to find out the factors that affect the alliance's lifetime and contribute to the endurance of strategic alliances. Accordingly, current empirical research provides an analysis from the endurance of strategic alliances and evaluates the role of reciprocal trust and partner competency in the durability of strategic alliances. To reach to this goal, data were gathered from 91 strategic alliances in the construction industry and analyses were done with regression modeling. The findings provide empirical support for the role of trust and competency on the endurance of strategic alliances. However, as alliances became older, the trust gets a more important role and replaces the competency. This result revealed that reciprocal trust is a more important criterion in partner selection for those alliances that need a long-term lifetime to reach to their potentials and goals.
References:
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Ariño, Africa. "Measures of strategic alliance performance: An analysis of construct validity." Journal of international Business studies 34, no. 1 (2003): 66-79.
Arthur, Jeffrey B., and Christopher L. Huntley. "Ramping up the organizational learning curve: Assessing the impact of deliberate learning on organizational performance under gainsharing." Academy of Management Journal 48, no. 6 (2005): 1159-1170.
Bierly III, Paul E., and Scott Gallagher. "Explaining alliance partner selection: fit, trust and strategic expediency." Long range planning 40, no. 2 (2007): 134-153.
Cao, Zhi, and Fabrice Lumineau. "Revisiting the interplay between contractual and relational governance: A qualitative and meta-analytic investigation." Journal of Operations Management 33 (2015): 15-42.
Contractor, Farok J., and Jeffrey J. Reuer. "Structuring and governing alliances: New directions for research." Global Strategy Journal 4, no. 4 (2014): 241-256.
Cui, Anna S. "Portfolio dynamics and alliance termination: The contingent role of resource dissimilarity." Journal of Marketing 77, no. 3 (2013): 15-32.
Cummings, Jeffrey L., and Stevan R. Holmberg. "Best-fit alliance partners: the use of critical success factors in a comprehensive partner selection process." Long Range Planning 45, no. 2-3 (2012): 136-159.
Dacin, M. Tina, Christine Oliver, and Jean‐Paul Roy. "The legitimacy of strategic alliances: An institutional perspective." Strategic management journal 28, no. 2 (2007): 169-187.
Das, Tushar K., and Bing-Sheng Teng. "A resource-based theory of strategic alliances." Journal of management 26, no. 1 (2000): 31-61.
Greve, Henrich R., Joel AC Baum, Hitoshi Mitsuhashi, and Timothy J. Rowley. "Built to last but falling apart: Cohesion, friction, and withdrawal from interfirm alliances." Academy of Management Journal 53, no. 2 (2010): 302-322.
Gundlach, Gregory T., and Joseph P. Cannon. "“Trust but verify”? The performance implications of verification strategies in trusting relationships." Journal of the Academy of Marketing Science 38, no. 4 (2010): 399-417.
Heimeriks, K. H., & Duysters, G. (2007). Alliance capability as a mediator between experience and alliance performance: An empirical investigation into the alliance capability development process. Journal of Management Studies, 44(1), 25-49.
Heimeriks, Koen H. "Confident or competent? How to avoid superstitious learning in alliance portfolios." Long Range Planning 43, no. 1 (2010): 57-84.
Hennart, Jean-Francois, and Ming Zeng. "Cross-cultural differences and joint venture longevity." Journal of International Business Studies 33, no. 4 (2002): 699-716.
Hitt, Michael A., David Ahlstrom, M. Tina Dacin, Edward Levitas, and Lilia Svobodina. "The institutional effects on strategic alliance partner selection in transition economies: China vs. Russia." Organization science 15, no. 2 (2004): 173-185.
Hitt, Michael A., M. Tina Dacin, Edward Levitas, Jean-Luc Arregle, and Anca Borza. "Partner selection in emerging and developed market contexts: Resource-based and organizational learning perspectives." Academy of Management journal 43, no. 3 (2000): 449-467.
Howard, Michael, H. Kevin Steensma, Marjorie Lyles, and Charles Dhanaraj. "Learning to collaborate through collaboration: How allying with expert firms influences collaborative innovation within novice firms." Strategic Management Journal 37, no. 10 (2016): 2092-2103.
Jalali, S. Hossein. "Cognitive capabilities and the strategic alliances' performance: how time frame matters?." International Journal of Management and Network Economics 4, no. 3 (2019): 230-245.
Jalali, S. Hossein. "How alliance partner characteristics can affect performance? An empirical evidence from emerging economies context." International Journal of Strategic Business Alliances 6, no. 1-2 (2017): 1-17.
Jalali, S. Hossein. "Interplay between cognition and design: how performance of strategic alliance with different design affected by cognitive capabilities?." International Journal of Management and Decision Making 19, no. 4 (2020): 391-407.
Katsikeas, Constantine S., Dionysis Skarmeas, and Daniel C. Bello. "Developing successful trust-based international exchange relationships." Journal of international business studies 40, no. 1 (2009): 132-155.
Klijn, Elko, Jeffrey J. Reuer, Peter J. Buckley, and Keith W. Glaister. "Combinations of partners’ joint venture formation motives." European Business Review 22, no. 6 (2010): 576-590.
Krishnan, Rekha, Inge Geyskens, and Jan‐Benedict EM Steenkamp. "The effectiveness of contractual and trust‐based governance in strategic alliances under behavioral and environmental uncertainty." Strategic Management Journal 37, no. 12 (2016): 2521-2542.
Lavie, Dovev. "Alliance portfolios and firm performance: A study of value creation and appropriation in the US software industry." Strategic management journal 28, no. 12 (2007): 1187-1212.
Lee, Hyunsuk, Donna Kelley, Jangwoo Lee, and Sunghun Lee. "SME survival: The impact of internationalization, technology resources, and alliances." Journal of small business management 50, no. 1 (2012): 1-19.
Lin, Haiying, and Nicole Darnall. "Strategic alliance formation and structural configuration." Journal of Business Ethics 127, no. 3 (2015): 549-564.
Lu, Jane W., and Dean Xu. "Growth and survival of international joint ventures: An external-internal legitimacy perspective." Journal of Management 32, no. 3 (2006): 426-448.
Lui, Steven S., Yin-yee Wong, and Weiping Liu. "Asset specificity roles in interfirm cooperation: Reducing opportunistic behavior or increasing cooperative behavior?." Journal of Business research 62, no. 11 (2009): 1214-1219.
Makino, Shige, Christine M. Chan, Takehiko Isobe, and Paul W. Beamish. "Intended and unintended termination of international joint ventures." Strategic Management Journal 28, no. 11 (2007): 1113-1132.
McCutchen Jr, William W., Paul M. Swamidass, and Bing-Sheng Teng. "Strategic alliance termination and performance: The role of task complexity, nationality, and experience." The Journal of High Technology Management Research 18, no. 2 (2008): 191-202.
Min, Jungwon. "Sensitivity of alliance termination to prealliance conditions: Expectation effects of alliance partners." Organization Studies 38, no. 7 (2017): 917-936.
Moen, Øystein, Ottar Bakås, Anette Bolstad, and Vidar Pedersen. "International market expansion strategies for high-tech firms: partnership selection criteria for forming strategic alliances." International Journal of Business and Management 5, no. 1 (2010): 20-30.
Pangarkar, Nitin. "Do firms learn from alliance terminations? An empirical examination." Journal of Management Studies 46, no. 6 (2009): 982-1004.
Park, Seung Ho, and Gerardo R. Ungson. "Interfirm rivalry and managerial complexity: A conceptual framework of alliance failure." Organization science 12, no. 1 (2001): 37-53.
Rahman, Noushi, and Helaine J. Korn. "Alliance longevity: Examining relational and operational antecedents." Long Range Planning 47, no. 5 (2014): 245-261.
Schilke, Oliver, and Anthony Goerzen. "Alliance management capability: an investigation of the construct and its measurement." Journal of management 36, no. 5 (2010): 1192-1219.
Solesvik, Marina Z., and Paul Westhead. "Partner selection for strategic alliances: case study insights from the maritime industry." Industrial Management & Data Systems 110, no. 6 (2010): 841-860.
Steensma, H. Kevin, and Marjorie A. Lyles. "Explaining IJV survival in a transitional economy through social exchange and knowledge‐based perspectives." Strategic management journal 21, no. 8 (2000): 831-851.
Wang, Lihua, and Edward J. Zajac. "Alliance or acquisition? A dyadic perspective on interfirm resource combinations." Strategic management journal 28, no. 13 (2007): 1291-1317.
Xia, Jun. "Mutual dependence, partner substitutability, and repeated partnership: the survival of cross‐border alliances." Strategic Management Journal 32, no. 3 (2011): 229-253.
Yoo, So‐Jin, Olukemi Sawyerr, and Wee‐Liang Tan. "The mediating effect of absorptive capacity and relational capital in alliance learning of SMEs." Journal of Small Business Management 54 (2016): 234-255.
Zhao, Fang. "A holistic and integrated approach to theorizing strategic alliances of small and medium-sized enterprises." Business Process Management Journal 20, no. 6 (2014): 887-905.
Ahlstrom, David, Edward Levitas, Michael A. Hitt, M. Tina Dacin, and Hong Zhu. "The three faces of China: Strategic alliance partner selection in three ethnic Chinese economies." Journal of World Business 49, no. 4 (2014): 572-585.
Ariño, Africa. "Measures of strategic alliance performance: An analysis of construct validity." Journal of international Business studies 34, no. 1 (2003): 66-79.
Arthur, Jeffrey B., and Christopher L. Huntley. "Ramping up the organizational learning curve: Assessing the impact of deliberate learning on organizational performance under gainsharing." Academy of Management Journal 48, no. 6 (2005): 1159-1170.
Bierly III, Paul E., and Scott Gallagher. "Explaining alliance partner selection: fit, trust and strategic expediency." Long range planning 40, no. 2 (2007): 134-153.
Cao, Zhi, and Fabrice Lumineau. "Revisiting the interplay between contractual and relational governance: A qualitative and meta-analytic investigation." Journal of Operations Management 33 (2015): 15-42.
Contractor, Farok J., and Jeffrey J. Reuer. "Structuring and governing alliances: New directions for research." Global Strategy Journal 4, no. 4 (2014): 241-256.
Cui, Anna S. "Portfolio dynamics and alliance termination: The contingent role of resource dissimilarity." Journal of Marketing 77, no. 3 (2013): 15-32.
Cummings, Jeffrey L., and Stevan R. Holmberg. "Best-fit alliance partners: the use of critical success factors in a comprehensive partner selection process." Long Range Planning 45, no. 2-3 (2012): 136-159.
Dacin, M. Tina, Christine Oliver, and Jean‐Paul Roy. "The legitimacy of strategic alliances: An institutional perspective." Strategic management journal 28, no. 2 (2007): 169-187.
Das, Tushar K., and Bing-Sheng Teng. "A resource-based theory of strategic alliances." Journal of management 26, no. 1 (2000): 31-61.
Greve, Henrich R., Joel AC Baum, Hitoshi Mitsuhashi, and Timothy J. Rowley. "Built to last but falling apart: Cohesion, friction, and withdrawal from interfirm alliances." Academy of Management Journal 53, no. 2 (2010): 302-322.
Gundlach, Gregory T., and Joseph P. Cannon. "“Trust but verify”? The performance implications of verification strategies in trusting relationships." Journal of the Academy of Marketing Science 38, no. 4 (2010): 399-417.
Heimeriks, K. H., & Duysters, G. (2007). Alliance capability as a mediator between experience and alliance performance: An empirical investigation into the alliance capability development process. Journal of Management Studies, 44(1), 25-49.
Heimeriks, Koen H. "Confident or competent? How to avoid superstitious learning in alliance portfolios." Long Range Planning 43, no. 1 (2010): 57-84.
Hennart, Jean-Francois, and Ming Zeng. "Cross-cultural differences and joint venture longevity." Journal of International Business Studies 33, no. 4 (2002): 699-716.
Hitt, Michael A., David Ahlstrom, M. Tina Dacin, Edward Levitas, and Lilia Svobodina. "The institutional effects on strategic alliance partner selection in transition economies: China vs. Russia." Organization science 15, no. 2 (2004): 173-185.
Hitt, Michael A., M. Tina Dacin, Edward Levitas, Jean-Luc Arregle, and Anca Borza. "Partner selection in emerging and developed market contexts: Resource-based and organizational learning perspectives." Academy of Management journal 43, no. 3 (2000): 449-467.
Howard, Michael, H. Kevin Steensma, Marjorie Lyles, and Charles Dhanaraj. "Learning to collaborate through collaboration: How allying with expert firms influences collaborative innovation within novice firms." Strategic Management Journal 37, no. 10 (2016): 2092-2103.
Jalali, S. Hossein. "Cognitive capabilities and the strategic alliances' performance: how time frame matters?." International Journal of Management and Network Economics 4, no. 3 (2019): 230-245.
Jalali, S. Hossein. "How alliance partner characteristics can affect performance? An empirical evidence from emerging economies context." International Journal of Strategic Business Alliances 6, no. 1-2 (2017): 1-17.
Jalali, S. Hossein. "Interplay between cognition and design: how performance of strategic alliance with different design affected by cognitive capabilities?." International Journal of Management and Decision Making 19, no. 4 (2020): 391-407.
Katsikeas, Constantine S., Dionysis Skarmeas, and Daniel C. Bello. "Developing successful trust-based international exchange relationships." Journal of international business studies 40, no. 1 (2009): 132-155.
Klijn, Elko, Jeffrey J. Reuer, Peter J. Buckley, and Keith W. Glaister. "Combinations of partners’ joint venture formation motives." European Business Review 22, no. 6 (2010): 576-590.
Krishnan, Rekha, Inge Geyskens, and Jan‐Benedict EM Steenkamp. "The effectiveness of contractual and trust‐based governance in strategic alliances under behavioral and environmental uncertainty." Strategic Management Journal 37, no. 12 (2016): 2521-2542.
Lavie, Dovev. "Alliance portfolios and firm performance: A study of value creation and appropriation in the US software industry." Strategic management journal 28, no. 12 (2007): 1187-1212.
Lee, Hyunsuk, Donna Kelley, Jangwoo Lee, and Sunghun Lee. "SME survival: The impact of internationalization, technology resources, and alliances." Journal of small business management 50, no. 1 (2012): 1-19.
Lin, Haiying, and Nicole Darnall. "Strategic alliance formation and structural configuration." Journal of Business Ethics 127, no. 3 (2015): 549-564.
Lu, Jane W., and Dean Xu. "Growth and survival of international joint ventures: An external-internal legitimacy perspective." Journal of Management 32, no. 3 (2006): 426-448.
Lui, Steven S., Yin-yee Wong, and Weiping Liu. "Asset specificity roles in interfirm cooperation: Reducing opportunistic behavior or increasing cooperative behavior?." Journal of Business research 62, no. 11 (2009): 1214-1219.
Makino, Shige, Christine M. Chan, Takehiko Isobe, and Paul W. Beamish. "Intended and unintended termination of international joint ventures." Strategic Management Journal 28, no. 11 (2007): 1113-1132.
McCutchen Jr, William W., Paul M. Swamidass, and Bing-Sheng Teng. "Strategic alliance termination and performance: The role of task complexity, nationality, and experience." The Journal of High Technology Management Research 18, no. 2 (2008): 191-202.
Min, Jungwon. "Sensitivity of alliance termination to prealliance conditions: Expectation effects of alliance partners." Organization Studies 38, no. 7 (2017): 917-936.
Moen, Øystein, Ottar Bakås, Anette Bolstad, and Vidar Pedersen. "International market expansion strategies for high-tech firms: partnership selection criteria for forming strategic alliances." International Journal of Business and Management 5, no. 1 (2010): 20-30.
Pangarkar, Nitin. "Do firms learn from alliance terminations? An empirical examination." Journal of Management Studies 46, no. 6 (2009): 982-1004.
Park, Seung Ho, and Gerardo R. Ungson. "Interfirm rivalry and managerial complexity: A conceptual framework of alliance failure." Organization science 12, no. 1 (2001): 37-53.
Rahman, Noushi, and Helaine J. Korn. "Alliance longevity: Examining relational and operational antecedents." Long Range Planning 47, no. 5 (2014): 245-261.
Schilke, Oliver, and Anthony Goerzen. "Alliance management capability: an investigation of the construct and its measurement." Journal of management 36, no. 5 (2010): 1192-1219.
Solesvik, Marina Z., and Paul Westhead. "Partner selection for strategic alliances: case study insights from the maritime industry." Industrial Management & Data Systems 110, no. 6 (2010): 841-860.
Steensma, H. Kevin, and Marjorie A. Lyles. "Explaining IJV survival in a transitional economy through social exchange and knowledge‐based perspectives." Strategic management journal 21, no. 8 (2000): 831-851.
Wang, Lihua, and Edward J. Zajac. "Alliance or acquisition? A dyadic perspective on interfirm resource combinations." Strategic management journal 28, no. 13 (2007): 1291-1317.
Xia, Jun. "Mutual dependence, partner substitutability, and repeated partnership: the survival of cross‐border alliances." Strategic Management Journal 32, no. 3 (2011): 229-253.
Yoo, So‐Jin, Olukemi Sawyerr, and Wee‐Liang Tan. "The mediating effect of absorptive capacity and relational capital in alliance learning of SMEs." Journal of Small Business Management 54 (2016): 234-255.
Zhao, Fang. "A holistic and integrated approach to theorizing strategic alliances of small and medium-sized enterprises." Business Process Management Journal 20, no. 6 (2014): 887-905.