IDEAS home Printed from
   My bibliography  Save this article

Implications for Including Shared Strategic Control in Multi-party Relationship Models


  • Arend, Richard


Contextual uncertainty and firm heterogeneity produce the potential for benefits from multi-party relationships, as well as the potential for inefficiencies in such relationships. We introduce the issue of shared control as a factor in the proper modeling of many multi-party relationships, such as that between a venture capitalist and entrepreneur. We find that adding this degree of freedom to the standard multi-party models (such as the principal-agent model) generates direct and indirect effects on the results. Under the most common circumstances, we predict that more potential for inefficiencies (e.g., pooling) will occur when parties share strategic control.

Suggested Citation

  • Arend, Richard, 2006. "Implications for Including Shared Strategic Control in Multi-party Relationship Models," European Management Journal, Elsevier, vol. 24(1), pages 38-48, February.
  • Handle: RePEc:eee:eurman:v:24:y:2006:i:1:p:38-48

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Gentile, Chiara & Spiller, Nicola & Noci, Giuliano, 2007. "How to Sustain the Customer Experience:: An Overview of Experience Components that Co-create Value With the Customer," European Management Journal, Elsevier, vol. 25(5), pages 395-410, October.
    2. Fritsch, Michael & Lukas, Rolf, 2001. "Who cooperates on R&D?," Research Policy, Elsevier, vol. 30(2), pages 297-312, February.
    3. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August.
    4. Belderbos, Rene & Carree, Martin & Lokshin, Boris, 2004. "Cooperative R&D and firm performance," Research Policy, Elsevier, vol. 33(10), pages 1477-1492, December.
    5. Abbie Griffin & John R. Hauser, 1992. "Patterns of Communication Among Marketing, Engineering and Manufacturing---A Comparison Between Two New Product Teams," Management Science, INFORMS, vol. 38(3), pages 360-373, March.
    6. Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
    7. David J. Teece, 1980. "The Diffusion of an Administrative Innovation," Management Science, INFORMS, vol. 26(5), pages 464-470, May.
    8. Shantanu Dutta & Om Narasimhan & Surendra Rajiv, 1999. "Success in High-Technology Markets: Is Marketing Capability Critical?," Marketing Science, INFORMS, pages 547-568.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Rachel Levy & Damien Talbot, 2015. "Control by proximity: Evidence from the 'Aerospace Valley' Competitiveness Cluster," Regional Studies, Taylor & Francis Journals, vol. 49(6), pages 955-972, June.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:24:y:2006:i:1:p:38-48. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.