IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v66y2008i1p106-127.html
   My bibliography  Save this article

Unpacking strategic alliances: The structure and purpose of alliance versus supplier relationships

Author

Listed:
  • Mayer, Kyle J.
  • Teece, David J.

Abstract

While strategic alliances have received a great deal of attention from academic researchers and practitioners, we still know relatively little about the contracts that govern these alliance relationships and their difference from more complex buyer-supplier contracts. Through an exploration of 15 alliance contracts to develop jet engines between a major aerospace manufacturer and eleven different alliance partners, we seek to understand the structure and purpose of these alliance contracts and their differences from standard buyer-supplier contracts. The alliance contracts we study are designed to share risk, facilitate learning and the exchange of knowledge, specify roles and responsibilities, and provide administrative mechanisms for adapting and resolving disputes. What emerges from this study is a better understanding of how alliances differ from other types of interfirm relationships and how these differences are reflected in the alliance contract.

Suggested Citation

  • Mayer, Kyle J. & Teece, David J., 2008. "Unpacking strategic alliances: The structure and purpose of alliance versus supplier relationships," Journal of Economic Behavior & Organization, Elsevier, vol. 66(1), pages 106-127, April.
  • Handle: RePEc:eee:jeborg:v:66:y:2008:i:1:p:106-127
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167-2681(08)00028-0
    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

    as
    1. Keith J. Crocker & Kenneth J. Reynolds, 1993. "The Efficiency of Incomplete Contracts: An Empirical Analysis of Air Force Engine Procurement," RAND Journal of Economics, The RAND Corporation, vol. 24(1), pages 126-146, Spring.
    2. Shelanski, Howard A & Klein, Peter G, 1995. "Empirical Research in Transaction Cost Economics: A Review and Assessment," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(2), pages 335-361, October.
    3. Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
    4. Keith J. Crocker & Scott E. Masten, 1988. "Mitigating Contractual Hazards: Unilateral Options and Contract Length," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 327-343, Autumn.
    5. Kyle J. Mayer & Nicholas S. Argyres, 2004. "Learning to Contract: Evidence from the Personal Computer Industry," Organization Science, INFORMS, vol. 15(4), pages 394-410, August.
    6. Hagedoorn, John, 1995. "Strategic technology partnering during the 1980s: Trends, networks and corporate patterns in non-core technologies," Research Policy, Elsevier, vol. 24(2), pages 207-231, March.
    7. Todd R. Zenger & William S. Hesterly, 1997. "The Disaggregation of Corporations: Selective Intervention, High-Powered Incentives, and Molecular Units," Organization Science, INFORMS, vol. 8(3), pages 209-222, June.
    8. Hubbard, R Glenn & Weiner, Robert J, 1986. "Regulation and Long-term Contracting in U.S. Natural Gas Markets," Journal of Industrial Economics, Wiley Blackwell, vol. 35(1), pages 71-79, September.
    9. Chisholm, Darlene C, 1997. "Profit-Sharing versus Fixed-Payment Contracts: Evidence from the Motion Pictures Industry," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(1), pages 169-201, April.
    10. John Hagedoorn, 1993. "Understanding the rationale of strategic technology partnering: Interorganizational modes of cooperation and sectoral differences," Strategic Management Journal, Wiley Blackwell, vol. 14(5), pages 371-385, July.
    11. Bharat N. Anand & Tarun Khanna, 2000. "Do firms learn to create value? The case of alliances," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 295-315, March.
    12. Michael D. Ryall & Rachelle C. Sampson, 2009. "Formal Contracts in the Presence of Relational Enforcement Mechanisms: Evidence from Technology Development Projects," Management Science, INFORMS, vol. 55(6), pages 906-925, June.
    13. John Hagedoorn & Rajneesh Narula, 1996. "Choosing Organizational Modes of Strategic Technology Partnering: International and Sectoral Differences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(2), pages 265-284, June.
    14. Nicholas S. Argyres & Janet Bercovitz & Kyle J. Mayer, 2007. "Complementarity and Evolution of Contractual Provisions: An Empirical Study of IT Services Contracts," Organization Science, INFORMS, vol. 18(1), pages 3-19, February.
    15. Alston, Lee J & Datta, Samar K & Nugent, Jeffrey B, 1984. "Tenancy Choice in a Competitive Framework with Transactions Costs," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 1121-1133, December.
    16. Goldberg, Victor P & Erickson, John R, 1987. "Quantity and Price Adjustment in Long-term Contracts: A Case Study of Petroleum Coke," Journal of Law and Economics, University of Chicago Press, vol. 30(2), pages 369-398, October.
    17. Pirrong, Stephen Craig, 1993. "Contracting Practices in Bulk Shipping Markets: A Transactions Cost Explanation," Journal of Law and Economics, University of Chicago Press, vol. 36(2), pages 937-976, October.
    18. Joskow, Paul L, 1988. "Price Adjustment in Long-term Contracts: The Case of Coal," Journal of Law and Economics, University of Chicago Press, vol. 31(1), pages 47-83, April.
    19. Masten, Scott E & Crocker, Keith J, 1985. "Efficient Adaptation in Long-term Contracts: Take-or-Pay Provisions for Natural Gas," American Economic Review, American Economic Association, vol. 75(5), pages 1083-1093, December.
    20. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    21. Oliver E. Williamson, 1999. "Strategy research: governance and competence perspectives," Strategic Management Journal, Wiley Blackwell, vol. 20(12), pages 1087-1108, December.
    22. Joskow, Paul L, 1987. "Contract Duration and Relationship-Specific Investments: Empirical Evidence from Coal Markets," American Economic Review, American Economic Association, vol. 77(1), pages 168-185, March.
    23. Andrew C. Inkpen & Mary M. Crossan, 1995. "Believing Is Seeing: Joint Ventures and Organization Learning," Journal of Management Studies, Wiley Blackwell, vol. 32(5), pages 595-618, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Astrid A. ter Wiel & Paul W. L. Vlaar, 2011. "When Firms do not Benefit from Collaborative Experience: Differences in the Intensity and Nature of Interorganizational Relationships," Chapters, in: Killian J. McCarthy & Maya Fiolet & Wilfred Dolfsma (ed.), The Nature of the New Firm, chapter 7, Edward Elgar Publishing.
    2. Stefano Ciliberti & Angelo Frascarelli & Gaetano Martino, 2020. "Drivers of participation in collective arrangements in the agri‐food supply chain. Evidence from Italy using a transaction costs economics perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 387-409, September.
    3. Teece, David J., 2010. "Technological Innovation and the Theory of the Firm," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 679-730, Elsevier.
    4. Jackie Krafft & Francesco Quatraro & Pier Saviotti, 2014. "Knowledge characteristics and the dynamics of technological alliances in pharmaceuticals: empirical evidence from Europe, US and Japan," Journal of Evolutionary Economics, Springer, vol. 24(3), pages 587-622, July.
    5. Helen M. Lloyd & Inger Ekman & Heather L. Rogers & Vítor Raposo & Paulo Melo & Valentina D. Marinkovic & Sandra C. Buttigieg & Einav Srulovici & Roman Andrzej Lewandowski & Nicky Britten, 2020. "Supporting Innovative Person-Centred Care in Financially Constrained Environments: The WE CARE Exploratory Health Laboratory Evaluation Strategy," IJERPH, MDPI, vol. 17(9), pages 1-19, April.
    6. Gressgård, Leif Jarle & Hansen, Kåre, 2015. "Knowledge exchange and learning from failures in distributed environments: The role of contractor relationship management and work characteristics," Reliability Engineering and System Safety, Elsevier, vol. 133(C), pages 167-175.
    7. Malhotra, Deepak & Lumineau, Fabrice, 2011. "Trust and collaboration in the aftermath of conflict: the effects of contract structure," MPRA Paper 38358, University Library of Munich, Germany.
    8. Reuer, Jeffrey & Devarakonda, S.V., 2015. "Mechanisms of hybrid governance : Administrative committees in non-equity alliances," Other publications TiSEM 063d9ccc-59c8-4e76-a77d-8, Tilburg University, School of Economics and Management.
    9. de Man, Ard-Pieter & Luvison, Dave, 2019. "Collaborative business models: Aligning and operationalizing alliances," Business Horizons, Elsevier, vol. 62(4), pages 473-482.
    10. Prasad, Acklesh & Green, Peter & Heales, Jon, 2012. "On IT governance structures and their effectiveness in collaborative organizational structures," International Journal of Accounting Information Systems, Elsevier, vol. 13(3), pages 199-220.
    11. Tulin Dzhengiz, 2020. "A Literature Review of Inter-Organizational Sustainability Learning," Sustainability, MDPI, vol. 12(12), pages 1-52, June.
    12. Nurhayati, Kartika & Tavasszy, Lóránt & Rezaei, Jafar, 2023. "Joint B2B supply chain decision-making: Drivers, facilitators and barriers," International Journal of Production Economics, Elsevier, vol. 256(C).
    13. Jamal Boukouray, 2017. "Low-Cost Versus Frugal Innovation Building Blocks & the Fundamentals of Jugaad Business Modeling (Podstawy innowacji niskokosztowych w porownaniu z innowacjami oszczednosciowymi oraz fundamenty tworze," Research Reports, University of Warsaw, Faculty of Management, vol. 2(24), pages 41-47.
    14. Albert Jolink & Eva Niesten, 2012. "Hybrid Governance," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 12, Edward Elgar Publishing.
    15. Czarnitzki, Dirk & Hottenrott, Hanna, 2012. "Collaborative R&D as a strategy to attenuate financing constraints," ZEW Discussion Papers 12-049, ZEW - Leibniz Centre for European Economic Research.
    16. Louise Bildsten, 2014. "Buyer-supplier relationships in industrialized building," Construction Management and Economics, Taylor & Francis Journals, vol. 32(1-2), pages 146-159, February.
    17. Jolink, Albert & Niesten, Eva, 2012. "Recent qualitative advances on hybrid organizations: Taking stock, looking ahead," Scandinavian Journal of Management, Elsevier, vol. 28(2), pages 149-161.
    18. Li, Ying & Shou, Yongyi & Ding, Ronggui & Sun, Tao & Zhou, Qing, 2019. "Governing local sourcing practices of overseas projects for the Belt and Road Initiative: A framework and evaluation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 212-226.
    19. Rebolledo, Claudia & Nollet, Jean, 2011. "Learning from suppliers in the aerospace industry," International Journal of Production Economics, Elsevier, vol. 129(2), pages 328-337, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marco Furlotti, 2007. "There is more to contracts than incompleteness: a review and assessment of empirical research on inter-firm contract design," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 11(1), pages 61-99, March.
    2. Kyle J. Mayer & Nicholas S. Argyres, 2004. "Learning to Contract: Evidence from the Personal Computer Industry," Organization Science, INFORMS, vol. 15(4), pages 394-410, August.
    3. Reuer, Jeffrey & Devarakonda, S.V., 2015. "Mechanisms of hybrid governance : Administrative committees in non-equity alliances," Other publications TiSEM 063d9ccc-59c8-4e76-a77d-8, Tilburg University, School of Economics and Management.
    4. Wang, Sen & Bogle, Tim & van Kooten, G. Cornelis, 2012. "Forestry and the New Institutional Economics," Working Papers 130818, University of Victoria, Resource Economics and Policy.
    5. M'Hand Farès & Stéphane Saussier, 2002. "Coûts de transaction et contrats incomplets," Revue Française d'Économie, Programme National Persée, vol. 16(3), pages 193-230.
    6. Nicholas S. Argyres & Janet Bercovitz & Kyle J. Mayer, 2007. "Complementarity and Evolution of Contractual Provisions: An Empirical Study of IT Services Contracts," Organization Science, INFORMS, vol. 18(1), pages 3-19, February.
    7. Fan, Joseph P. H., 2000. "Price uncertainty and vertical integration: an examination of petrochemical firms," Journal of Corporate Finance, Elsevier, vol. 6(4), pages 345-376, December.
    8. Nicholas S. Argyres & Teppo Felin & Nicolai Foss & Todd Zenger, 2012. "Organizational Economics of Capability and Heterogeneity," Organization Science, INFORMS, vol. 23(5), pages 1213-1226, October.
    9. Marcelo Bucheli & Joseph T. Mahoney & Paul M. Vaaler, 2010. "Chandler's Living History: "The Visible Hand" of Vertical Integration in Nineteenth Century America Viewed Under a Twenty-First Century Transaction Costs Economics Lens," Journal of Management Studies, Wiley Blackwell, vol. 47(s1), pages 859-883, July.
    10. Dean V. Williamson, 2006. "Organization, Control and the Single Entity Defense in Antitrust," EAG Discussions Papers 200604, Department of Justice, Antitrust Division.
    11. López-Bayón, Susana & González-Díaz, Manuel, 2010. "Indefinite contract duration: Evidence from electronics subcontracting," International Review of Law and Economics, Elsevier, vol. 30(2), pages 145-159, June.
    12. Brodrechtova, Yvonne, 2015. "Economic valuation of long-term timber contracts: Empirical evidence from Germany," Forest Policy and Economics, Elsevier, vol. 55(C), pages 1-9.
    13. Ranjani Krishnan & Deepa Mani, 2020. "Uncertainty and Compensation Design in Strategic Interfirm Contracts†," Contemporary Accounting Research, John Wiley & Sons, vol. 37(1), pages 542-574, March.
    14. Ciccotello, Conrad S & Hornyak, Martin J & Piwowar, Michael S, 2004. "Research and Development Alliances: Evidence from a Federal Contracts Repository," Journal of Law and Economics, University of Chicago Press, vol. 47(1), pages 123-166, April.
    15. Sergei Guriev & Dmitriy Kvasov, 2005. "Contracting on Time," American Economic Review, American Economic Association, vol. 95(5), pages 1369-1385, December.
    16. Pierre-André Chiappori & Bernard Salanié, 2002. "Testing Contract Theory : A Survey of Some Recent Work," Working Papers 2002-11, Center for Research in Economics and Statistics.
    17. Maija Halonen-Akatwijuka & Oliver Hart, 2020. "Continuing Contracts [“Firms’ Use of Outside Contractors: Theory and Evidence,”]," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 36(2), pages 284-313.
    18. Stéphane Saussier, 1998. "La durée des contrats interentreprises : une analyse empirique," Économie et Prévision, Programme National Persée, vol. 135(4), pages 137-146.
    19. Chi-Kong Chyong, 2015. "Markets and long-term contracts: The case of Russian gas supplies to Europe," Cambridge Working Papers in Economics 1542, Faculty of Economics, University of Cambridge.
    20. Jochen Schweitzer, 2016. "How Contracts And Culture Mediate Joint Transactions Of Innovation Partnerships," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-33, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:jeborg:v:66:y:2008:i:1:p:106-127. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jebo .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.