Resource title

Cooperation costs, governance choice and alliance evolution (RV of 2001/69/ABA)

Resource image

image for OpenScout resource :: Cooperation costs, governance choice and alliance evolution (RV of 2001/69/ABA)

Resource description

While researchers in alliance management have identified the duality of cooperation and control within alliances, comparative governance scholars have not yet developed a coherent framework for relating the costs of cooperation to governance choices. This paper proposes a theory of cooperation costs highlighting the importance of joint task complexity, interpartner diversity, strategic implications, and equity on the perception of alliance value and the formation and evolution of hybrid governance structures. A tolerance frontier is used to predict conditions for alliance failure both ex ante and after formation, as well as conditions under which an alliance will evolve once formed. The framework is illustrated through an analysis of the initial structuring and subsequent changes in the NedCar alliance between Mitsubishi Motors and Volvo, and implications for further research are discussed.

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2002/2002-81.pdf

Resource license

Copyright INSEAD. All rights reserved