2004
DOI: 10.1016/j.jm.2004.02.002
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The Role of Trust and Contractual Safeguards on Cooperation in Non-equity Alliances

Abstract: Because partners may behave opportunistically in alliances, contractual safeguards or trust between partners are necessary for successful outcomes. However, it remains controversial whether safeguards and trust substitute or complement each other. Drawing on transaction cost theory, this study conceptualizes both contractual safeguards and trust as important control mechanisms in non-equity alliances, and develops a model that relates contractual safeguards and trust to cooperative outcomes. We test our hypoth… Show more

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Cited by 367 publications
(350 citation statements)
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References 50 publications
(67 reference statements)
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“…Our findings support Das and Teng's (2001) and Lui and Ngo's (2004) work and elaborate on their findings that it is crucial to identify specific relationships among different trust types and organizational outcomes. Specifically, the paper contributes to the relationship between trust and knowledge integration processes by showing that different types of trust promote coupled or decoupled knowledge integration processes.…”
Section: Resultssupporting
confidence: 85%
“…Our findings support Das and Teng's (2001) and Lui and Ngo's (2004) work and elaborate on their findings that it is crucial to identify specific relationships among different trust types and organizational outcomes. Specifically, the paper contributes to the relationship between trust and knowledge integration processes by showing that different types of trust promote coupled or decoupled knowledge integration processes.…”
Section: Resultssupporting
confidence: 85%
“…In other words, relationally capable organisations focus on creating relationship-specific assets and effectively create, exchange and exploit knowledge and skills through the application of social routines and behaviour (Dyer and Singh, 1998). This form of capability is derived from values and processes in the exchange relationship (Macneil, 1980) and incorporates: trust and commitment, relational capital, information sharing routines and informal exchange (Lui and Ngo, 2004). Any unforeseeable contingencies in these relationships are safeguarded by flexibility, fostering a joint approach to solving problems and disagreements through solidarity and information sharing (Poppo and Zenger, 2002).…”
Section: Capability Development For Pss Deliverymentioning
confidence: 99%
“…Alliances characterized by poor relational quality suffer dysfunctional conflicts, distrust, and low commitment, which is, low social satisfaction (Anderson and Narus, 1990). To achieve their firms' strategic objectives, alliance managers likely respond to situations of low relational quality, which increase the costs of managing and monitoring partners (Lui and Ngo, 2004). Social satisfaction builds over the long run when partners work together (Ariño et al, 2001).…”
Section: Antecedents Of Response Strategiesmentioning
confidence: 99%