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Success through commitment and trust: the soft side of strategic alliance management

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  • Cullen, John B.
  • Johnson, Jean L.
  • Sakano, Tomoaki
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    Abstract

    This article argues that the success of international strategic alliances requires attention not only to the hard side of alliance management (e.g., financial issues and other operational issues) but, also, to the soft side. The soft side refers to the development and management of relationship capital in the alliance. Relationship capital consists of the socio-psychological aspects of the alliance that are positive and beneficial to the alliance. Two important areas of relationship capital are mutual trust and commitment. Based on our findings from two major studies of Japanese strategic alliances, we develop a dynamic model of trust and commitment based on mutual adjustments of alliance partners. We also show how the dynamics of trust and commitment affect the performance of international strategic alliances with the Japanese. The article concludes with a discussion of the managerial implications of our findings and the dynamic model.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 35 (2000)
    Issue (Month): 3 ()
    Pages: 223-240

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    Handle: RePEc:eee:worbus:v:35:y:2000:i:3:p:223-240

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    References

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    1. Jean L Johnson & John B Cullen & Tomoaki Sakano & Hideyuki Takenouchi, 1996. "Setting the Stage for Trust and Strategic Integration in Japanese-U.S. Cooperative Alliances," Journal of International Business Studies, Palgrave Macmillan, vol. 27(5), pages 981-1004, December.
    2. Jean L Johnson & John B Cullen & Tomoaki Sakano & Hideyuki Takenouchi, 1996. "Setting the Stage for Trust and Strategic Integration in Japanese-U.S. Cooperative Alliances," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 981-1004, December.
    3. John B Cullen & Jean L Johnson & Tomoaki Sakano, 1995. "Japanese and Local Partners Commitment to IJVs: Psychological Consequences of Outcomes and Investments in the IJV Relationships," Journal of International Business Studies, Palgrave Macmillan, vol. 26(1), pages 91-115, March.
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    Cited by:
    1. Kedia, Ben L. & Lahiri, Somnath, 2007. "International outsourcing of services: A partnership model," Journal of International Management, Elsevier, vol. 13(1), pages 22-37, March.
    2. Sambasivan, Murali & Siew-Phaik, Loke & Abidin Mohamed, Zainal & Choy Leong, Yee, 2013. "Factors influencing strategic alliance outcomes in a manufacturing supply chain: Role of alliance motives, interdependence, asset specificity and relational capital," International Journal of Production Economics, Elsevier, vol. 141(1), pages 339-351.
    3. Si, Steven X. & Bruton, Garry D., 2005. "Knowledge acquisition, cost savings, and strategic positioning: effects on Sino-American IJV performance," Journal of Business Research, Elsevier, vol. 58(11), pages 1465-1473, November.
    4. Rebecca Guidice & Neal Mero, 2007. "Governing joint ventures: tension among principals’ dominant logic on human motivation and behavior," Journal of Management and Governance, Springer, vol. 11(3), pages 261-283, September.
    5. Henchion, Maeve M. & Sorenson, Douglas, 2011. "Formal Food-related Networks in Ireland: A Case Study Analysis," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2(4).
    6. Perry, Monica L. & Sengupta, Sanjit & Krapfel, Robert, 2004. "Effectiveness of horizontal strategic alliances in technologically uncertain environments: are trust and commitment enough?," Journal of Business Research, Elsevier, vol. 57(9), pages 951-956, September.
    7. Liu, Chia-Ling (Eunice) & Ghauri, Pervez N. & Sinkovics, Rudolf R., 2010. "Understanding the impact of relational capital and organizational learning on alliance outcomes," Journal of World Business, Elsevier, vol. 45(3), pages 237-249, July.
    8. Thang Nguyen & Marc Weinstein & Alan Meyer, 2005. "Development of Trust: A Study of Interfirm Relationships in Vietnam," Asia Pacific Journal of Management, Springer, vol. 22(3), pages 211-235, September.
    9. Francis Bidault & Alessio Castello, 2008. "Trust and creativity: Identifying the role of trust in creativity-oriented joint-developments," ESMT Research Working Papers ESMT-08-010, ESMT European School of Management and Technology.
    10. Danskin, Paula & Dibrell, Clay & Kedia, Ben L., 2005. "The evolving role of cooperation among multinational corporations and indigenous organizations in transition economies: A migration away from confrontation," Journal of World Business, Elsevier, vol. 40(3), pages 223-234, August.
    11. Muethel, Miriam & Hoegl, Martin, 2012. "The influence of social institutions on managers’ concept of trust: Implications for trust-building in Sino-German relationships," Journal of World Business, Elsevier, vol. 47(3), pages 420-434.
    12. Griffith, David A. & Yalcinkaya, Goksel & Calantone, Roger J., 2010. "Do marketing capabilities consistently mediate effects of firm intangible capital on performance across institutional environments?," Journal of World Business, Elsevier, vol. 45(3), pages 217-227, July.
    13. Rawwas, Mohammed Y.A. & Iyer, Karthik N.S., 2013. "How do small firms possibly survive? A comparison study of marketing skills and logistics infrastructure of small and large wholesalers," International Business Review, Elsevier, vol. 22(4), pages 687-698.
    14. Kumar, Rajesh & Rangan, U. Srinivasa & Rufín, Carlos, 2005. "Negotiating complexity and legitimacy in independent power project development," Journal of World Business, Elsevier, vol. 40(3), pages 302-320, August.
    15. Bianchi, Constanza C. & Saleh, Md. Abu, 2011. "Antecedents of importer relationship performance in Latin America," Journal of Business Research, Elsevier, vol. 64(3), pages 258-265, March.
    16. Nguyen, Thang V., 2005. "Learning to trust: a study of interfirm trust dynamics in Vietnam," Journal of World Business, Elsevier, vol. 40(2), pages 203-221, May.
    17. Liu, C.-L.E., 2012. "An investigation of relationship learning in cross-border buyer–supplier relationships: The role of trust," International Business Review, Elsevier, vol. 21(3), pages 311-327.
    18. Blanchot, Fabien, 2006. "Alliances et performances : un essai de synthèse," Economics Papers from University Paris Dauphine 123456789/2221, Paris Dauphine University.

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