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J Bus Psychol (2010) 25:5574 DOI 10.1007/s10869-009-9132-2
Determinants of Partner Opportunism in Strategic Alliances: A Conceptual Framework
T. K. Das Noushi Rahman
Published online: 16 September 2009 Springer Science+Business Media, LLC 2009
AbstractPurpose We present a comprehensive framework of the key determinants of partner opportunism in strategic alliances.
Design/methodology/approach We propose an extended denition of partner opportunism and three categories of the determinants of partner opportunism based on a review of the literature. These categories comprise economic factors (equity involvement, asymmetric alliance-specic investments, mutual hostages, and payoff inequity), relational factors (cultural diversity and goal incompatibilities), and temporal factors (alliance horizon and pressures for quick results).
Findings The framework of determinants makes clear how the various determinants of partner opportunism may be differentially salient in the three major alliance types, namely, equity joint ventures, minority equity alliances, and nonequity alliances.
Implications Based on the framework, a number of propositions are developed to facilitate empirical research on partner opportunism. Managerial implications owing from the proposed framework are also discussed.
Originality/value Although scholars in various disciplines have studied the general topic of opportunistic behavior, our understanding of partner opportunism in strategic alliances appears to be fragmented and inadequate. As partner opportunism is acknowledged as a signicant threat to alliance survival and success, a comprehensive framework of the key determinants of such opportunism should improve our understanding of this phenomenon and to also provide an impetus for future research. The article also responds to the need of alliance managers for a framework of key factors that are responsible for partner opportunism so that they may be able to deploy appropriate deterrence mechanisms to minimize opportunistic behaviors.
Keywords Strategic alliances Partner opportunism
Determinants of opportunism Alliance horizon
Opportunistic behavior Equity joint ventures
Minority equity alliances Nonequity alliances
Introduction
For large corporations as well as small entrepreneurial rms, strategic alliances are becoming more and more a necessity for ensuring a competitive edge in the marketplace. Strategic alliances are interrm cooperative arrangements aimed at achieving the strategic objectives of the partners (Das and Teng 1998, p. 491). A high percentage of alliances that are formed, however, end up as failures (see Das and Teng 2000, for a discussion of possible causes). Clearly, a member rm in an alliance faces certain adversities that...