Resource title

A Theory of interaction costs, governance choice and alliance evolution

Resource image

image for OpenScout resource :: A Theory of interaction costs, governance choice and alliance evolution

Resource description

While research in alliance management has distinguished between the costs of cooperation and the costs of control in cooperative interorganizational relationships, the comparative governance literature has not incorporated the former as a coherent framework for analyzing governance choices. In this paper the author propose a theory of interaction costs highlighting the importance of joint task complexity, interpartner diversity, strategic implications, and equity on the formation and evolution of hybrid governance structures. A tolerance frontier is used to predict conditions for alliance failure ex ante and ex post formation, as well as suggest managerial approaches for avoiding such failure.

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2001/2001-69.pdf

Resource license

Copyright INSEAD. All rights reserved