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The role of fairness in alliance formation

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  • Africa Ariño
  • Peter Smith Ring

Abstract

We report on data from a revelatory qualitative case study of a failed attempt to form an international joint venture (IJV) agreement. We analyze issues related to distributive, procedural, interpersonal, and informational fairness and the roles of their occurrence in the course of the formation stage of an IJV. We find that perceptions of fairness types shape the partners' decision making logics (a property rights logic, a control rights logic, and a relational quality logic), which in turn influence the partners' evaluations of efficiency and equity of the proposed alliance and their decision on whether or not to form it. We develop propositions around this argument. Copyright © 2010 John Wiley & Sons, Ltd.

Suggested Citation

  • Africa Ariño & Peter Smith Ring, 2010. "The role of fairness in alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 31(10), pages 1054-1087, October.
  • Handle: RePEc:bla:stratm:v:31:y:2010:i:10:p:1054-1087
    DOI: 10.1002/smj.846
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    1. Shen, Lu & Su, Chenting & Zheng, Xu & Zhuang, Guijun, 2019. "Contract design capability as a trust enabler in the pre-formation phase of interfirm relationships," Journal of Business Research, Elsevier, vol. 95(C), pages 103-115.
    2. Reddy, Kotapati Srinivasa, 2015. "Market for Corporate Control and Contractual Buyout (CoBO): A New “Collective Ownership-and-Administrative” Strategy," MPRA Paper 63937, University Library of Munich, Germany, revised 2015.
    3. Dora Triki & Moalla Emna & Pundrich Aline Pereira, 2012. "Les conflits dans les joint-ventures internationales (JVI) sous le prisme de la gestion de crise," Post-Print halshs-00690333, HAL.
    4. Contractor, Farok J. & Woodley, James A., 2015. "How the alliance pie is split: Value appropriation by each partner in cross-border technology transfer alliances," Journal of World Business, Elsevier, vol. 50(3), pages 535-547.
    5. Emna Moalla & Dora Triki, 2011. "Comment les firmes multinationales peuvent-elles réussir leurs partenariats ?," Post-Print halshs-00690379, HAL.
    6. Xiaohong Yu & Sujuan Wang & Xindong Zhang, 2019. "The Impact of Fairness Concerns on the Formation of Retailers Alliance with Consideration of Transshipment," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    7. Kaulio, Matti, 2013. "A Psychological Contract Perspective on R&D Alliance Projects: Learning from a Close-to-Failing Case," INDEK Working Paper Series 2013/3, Royal Institute of Technology, Department of Industrial Economics and Management.
    8. Hao, Bin & Feng, Yanan & Ye, Jiangfeng, 2017. "Building interfirm leadership: A relational identity perspective," European Management Journal, Elsevier, vol. 35(5), pages 651-662.
    9. Brown, Richard S., 2017. "Scanning and updating failure: How AT&T turned its political capability into a core rigidity," Telecommunications Policy, Elsevier, vol. 41(2), pages 71-89.
    10. Bidault, Francis & de la Torre, José R. & Zanakis, Stelios H. & Ring, Peter Smith, 2018. "Willingness to rely on trust in global business collaborations: Context vs. demography," Journal of World Business, Elsevier, vol. 53(3), pages 373-391.
    11. K.S. Reddy & En Xie & Yuanyuan Huang, 2016. "Contractual buyout - a legitimate growth model in the enterprise development: foundations and implications," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 15(1), pages 1-23.
    12. Xiaohong Yu & Sujuan Wang & Xindong Zhang, 2019. "Ordering Decision and Coordination of a Dual-Channel Supply Chain with Fairness Concerns Under an Online-to-Offline Model," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(02), pages 1-26, April.
    13. Monika Stelmaszczyk & Agata Pierscieniak & Denisa Abrudan, 2023. "Managerial decisions and new product development in the circular economy model enterprise: absorptive capacity and a mediating role of strategic orientation," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(1), pages 35-49, March.
    14. Jane M. Binner & Leslie R. Fletcher & Vassili Kolokoltsov & Francesco Ciardiello, 2013. "External Pressure on Alliances: What Does the Prisoners’ Dilemma Reveal?," Games, MDPI, vol. 4(4), pages 1-22, December.
    15. Jha, Anand & Kim, YoungJun & Gutierrez-Wirsching, Sandra, 2019. "Formation of cross-border corporate strategic alliances: The roles of trust and cultural, institutional, and geographical distances," Journal of Behavioral and Experimental Finance, Elsevier, vol. 21(C), pages 22-38.
    16. Philippe Monin & Niels Noorderhaven & Eero Vaara & David Kroon, 2013. "Giving Sense to and Making Sense of Justice in Postmerger Integration," Post-Print hal-02276708, HAL.
    17. Habib Mahama & Zhichao (Alex) Wang, 2023. "Impact of the interactive and diagnostic uses of performance measurement systems on procedural fairness perception, cooperation and performance in supply alliances," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(3), pages 3253-3296, September.
    18. Tobias Schoenherr & Elliot Bendoly & Daniel G. Bachrach & Anthony C. Hood, 2017. "Task Interdependence Impacts on Reciprocity in IT Implementation Teams: Bringing Out the Worst in Us, or Driving Responsibility?," Production and Operations Management, Production and Operations Management Society, vol. 26(4), pages 667-685, April.
    19. Mai, Feng & Fry, Michael J. & Raturi, Amitabh S., 2016. "Supply-chain performance anomalies: Fairness concerns under private cost informationAuthor-Name: Qin, Fei," European Journal of Operational Research, Elsevier, vol. 252(1), pages 170-182.
    20. Soe-Tsyr Daphne Yuan & Shiou-Tian Hsu, 0. "Enhancing service system design: An entity interaction pattern approach," Information Systems Frontiers, Springer, vol. 0, pages 1-27.
    21. Yeung, Kwong & Cheng, T.C.E. & Lee, Peter K.C., 2015. "Buyers’ perceptions on the impact of strategic purchasing on dyadic quality performances," International Journal of Production Economics, Elsevier, vol. 168(C), pages 321-330.
    22. Yuk, Hyeyeon & Garrett, Tony C., 2023. "Does customer participation moderate the effects of innovation on cost-based financial performance? An examination of different forms of customer participation," Journal of Business Research, Elsevier, vol. 156(C).
    23. Soe-Tsyr Daphne Yuan & Shiou-Tian Hsu, 2017. "Enhancing service system design: An entity interaction pattern approach," Information Systems Frontiers, Springer, vol. 19(3), pages 481-507, June.

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