Farok J. Contractor
Rutgers Business School

Contractor

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(Thursday, 21st May 2015)

Title : Inter-Organizational Governance: Optimizing the Mode and Structure of Alliances

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Given the variety of possible collaborative arrangements, from simple licensing, to contracts with option clauses, to more interactive “relational” alliances, to equity-based alliances such as joint ventures, which alliance governance structure is appropriate? The objectives are (a) to maximize recombinant knowledge, (b) maximize synergistic commercial benefits accruing to both partners, while at the same time, each partner wishes to (c) increase their share of net benefits captured and (d) lower their transaction costs and risk. These objectives are not always congruent, and the optimum governance mode is also a function of type of technology, technological distance between the allies, and external factors such as market potential and the regulatory environment within which the alliance operates.

Bibliographical references :

“How the Alliance Pie is Split: Value Appropriation by Each Partner in Cross-Border Technology Transfer Alliances,” Journal of World Business, (forthcoming, 2015). Contractor, Farok & Woodley, James.

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“Structuring and Governing Alliances: New Directions for Research,” Global Strategy Journal, (forthcoming 2015) Contractor, Farok J. & Reuer, Jeffrey, J.

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“How Tight an Embrace: Choosing the Optimal Degree of Partner Interaction in Alliances Based on Risk, Technology Characteristics, and Agreement Provisions,” Global Strategy Journal, (August 2011), 1: 67-85. Contractor, Farok J., Woodley, James A. & Piepenbrink, Anke.

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“Alliance Formation Propensity in a Global Industry Network,” International Journal of Strategic Business Alliances, (January 2011), 2 (4): 245-270. Contractor, Farok J., Beldona, Sam & Kim, Changsu.

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