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Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/13082

Title: Alliance governance: Balancing control and trust in dealing with risk
Authors: De Man, Ard-Pieter
Roijakkers, Nadine
Issue Date: 2009
Citation: LONG RANGE PLANNING, 42(2009), p. 75-95
Abstract: When designing an alliance governance structure, managers have to choose between approaches based on control or on trust. This article proposes a framework to help managers decide which of the two is appropriate in a particular situation. The debate in the literature on control and trust centres on two issues: first, on the question of whether control and trust are substitutes or complements, and second on the links between control, trust and risk. This article connects these two debates. Our framework proposes that whether control and trust are substitutes or complements depends on the level and type of risk an alliance faces. We argue that in high risk situations companies use complex combinations of control and trust in a complementary way, rather than loose relationships as suggested by current thinking. In low risk situations we expect control and trust to be substitutes. In line with current contributions, we find that intermediate levels of risk require alliance governance to be based either exclusively on trust or exclusively on control, depending on the type of risk the alliance faces. These principles are illustrated by a detailed analysis of the governance structure of alliances in the financial, consumer goods, retail, construction and agriculture sectors.
Notes: Reprint Address: de Man, AP (reprint author), Vrije Univ Amsterdam, De Boelelaan 1105,3A-28, NL-1081 HV Amsterdam, Netherlands Addresses: 1. Vrije Univ Amsterdam, NL-1081 HV Amsterdam, Netherlands 2. Atos Consulting, NL-1081 HV Amsterdam, Netherlands 3. Atos Consulting, NL-3528 BJ Utrecht, Netherlands 4. Eindhoven Univ Technol, NL-5600 MB Eindhoven, Netherlands E-mail Address: aman@feweb.vu.nl, nadine.roijakkers@atosorigin.com
URI: http://hdl.handle.net/1942/13082
DOI: 10.1016/j.lrp.2008.10.00
ISI #: 000265362400005
ISSN: 0024-6301
Category: A1
Type: Journal Contribution
Appears in Collections: Research publications

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