This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Download to citation manager Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by Young-Ybarra, C. Articles by Wiersema, M. Search for Related Content

Strategic Flexibility in Information Technology Alliances: The Influence of Transaction Cost Economics and Social Exchange Theory

Argyros School of Business and Economics, Chapman University, Orange, California 92866
Graduate School of Management, University of California, Irvine, Irvine, California 92697-3125

Utilizing a model drawn from both transaction cost economics and social exchange theory, we analyze determinants of strategic flexibility in a sample of strategic alliances involved in joint development agreements or joint research pacts. Findings indicate that, in general, determinants suggested by transaction cost economics provided flexibility in modification and inflexibility in exit. From social exchange theory, trust was found to be positively related to both types of flexibility while another component of social exchange theory, dependence, was found to be negatively related to the strategic flexibility of the alliance. Results also found that factors suggested by both transaction cost economic theory and social exchange theory were related to the concept of trust. Economic constraints as suggested by transaction cost economics were positively related to trust between the alliance partners while dependence was negatively related to trust. Additionally, the quality of communication and the existence of shared values were positively related to trust between the exchange partners. Results provide support for the role of determinants from both transaction cost economics and social exchange theory in the flexibility of strategic alliances.

Key Words: Strategic alliances; Flexibility; Trust

This article has been cited by other articles:

				Y. Chen and A. Bharadwaj An Empirical Analysis of Contract Structures in IT Outsourcing Information Systems Research, December 1, 2009; 20(4): 484 - 506. [Abstract] [PDF]

				S. Fernandez Understanding Contracting Performance: An Empirical Analysis Administration Society, March 1, 2009; 41(1): 67 - 100. [Abstract] [PDF]

				L. Poppo, K. Z. Zhou, and S. Ryu Alternative Origins to Interorganizational Trust: An Interdependence Perspective on the Shadow of the Past and the Shadow of the Future Organization Science, January 1, 2008; 19(1): 39 - 55. [Abstract] [PDF]

				R. Wells and B. J. Weiner Adapting a Dynamic Model of Interorganizational Cooperation to the Health Care Sector Med Care Res Rev, October 1, 2007; 64(5): 518 - 543. [Abstract] [PDF]

				A. Malhotra, S. Gosain, and O. A. El Sawy Leveraging Standard Electronic Business Interfaces to Enable Adaptive Supply Chain Partnerships Information Systems Research, September 1, 2007; 18(3): 260 - 279. [Abstract] [PDF]

				Y. Zhang, J. M. George, and T.-S. Chan The Paradox of Dueling Identities: The Case of Local Senior Executives in MNC Subsidiaries Journal of Management, June 1, 2006; 32(3): 400 - 425. [Abstract] [PDF]

				S. S. Lui and H.-Y. Ngo The Influence of Structural and Process Factors on Partnership Satisfaction in Interfirm Cooperation Group Organization Management, August 1, 2005; 30(4): 378 - 397. [Abstract] [PDF]

				S. S. Lui and H.-Y. Ngo The Role of Trust and Contractual Safeguards on Cooperation in Non-equity Alliances Journal of Management, August 1, 2004; 30(4): 471 - 485. [Abstract] [PDF]

				J. L. Johnson, R. P.-W. Lee, A. Saini, and B. Grohmann Market-Focused Strategic Flexibility: Conceptual Advances and an Integrative Model Journal of the Academy of Marketing Science, January 1, 2003; 31(1): 74 - 89. [Abstract] [PDF]

				U. Staber and J. Sydow Organizational Adaptive Capacity: A Structuration Perspective Journal of Management Inquiry, December 1, 2002; 11(4): 408 - 424. [Abstract] [PDF]

				W. Vanhaverbeke, G. Duysters, and N. Noorderhaven External Technology Sourcing Through Alliances or Acquisitions: An Analysis of the Application-Specific Integrated Circuits Industry Organization Science, November 1, 2002; 13(6): 714 - 733. [Abstract] [PDF]

				R. D. Ireland, M. A. Hitt, and D. Vaidyanath Alliance Management as a Source of Competitive Advantage Journal of Management, June 1, 2002; 28(3): 413 - 446. [Abstract] [PDF]