2011
DOI: 10.5465/amr.2009.0481
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Testing the Waters: Using Collective Real Options to Manage the Social Dilemma of Strategic Alliances

Abstract: We extend real options research by introducing the concept of collective real options and model how collective real options provide strategic alliances a mechanism to manage social uncertainty. Collective real options manage social uncertainty by producing relational small wins that develop trust. The amount of trust developed by acquiring a collective real option depends on the exposure of alliance partners. Alliance partner reputation also plays an important role in the impact of collective real options.

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Cited by 37 publications
(41 citation statements)
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“…For cooperation to occur in social dilemmas, partners must not only want to cooperate but also expect that the other partners will cooperate (Morgan and Hunt ; McCarter et al. ).…”
Section: Resolving Public‐private Partnerships Social Dilemmasmentioning
confidence: 99%
“…For cooperation to occur in social dilemmas, partners must not only want to cooperate but also expect that the other partners will cooperate (Morgan and Hunt ; McCarter et al. ).…”
Section: Resolving Public‐private Partnerships Social Dilemmasmentioning
confidence: 99%
“…Reputation matters in the interconnected society and discourages individuals from engaging in socially undesirable behavior. Knowing that today's selfish or cooperative action may trigger a negative or positive feedback loop in future conflicts can encourage individuals to contemplate their long-term reputations (McCarter et al, 2011b). A noncooperative reputation can eventually lead to ostracism (Kerr et al, 2009).…”
Section: The Future Of Social Dilemma Modelsmentioning
confidence: 99%
“…8 Social dilemma models distinguish between opportunistic and defensive conflict or defection (e.g. McCarter et al, 2010;McCarter et al, 2011b;Rockmann & Northcraft, 2008). However, the multidimensionality of conflict here is between why a person chooses a course of action that harms the collective and not a course that can benefit the collective through conflict.…”
Section: Concluding Remarkmentioning
confidence: 99%
“…When individuals assess a situation as risky and believe that their resources are in danger and could be exploited by others (McCarter et al, 2011), i.e., when they feel very vulnerable, their trust levels must be high if they are to behave prosocially and engage in cooperative pro-environmental behaviors.…”
Section: The Importance Of Studying Water Consumptionmentioning
confidence: 99%