Industrial Engineering Journal ›› 2011, Vol. 14 ›› Issue (5): 8-13.

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An Empirical Study on the Cooperative Effectiveness of Contracted Strategic Alliance

  

  1. School of Economics and Business Administration, Chongqing University, Chongqing 400030, China
  • Online:2011-10-31 Published:2011-11-11

Abstract: The cooperation of a strategy alliance can be realized by designing appropriate contracts among the members in the alliance. The objective of this paper is to analyze how the contract design impacts the cooperation effectiveness. Based on the theory of trade cost economy (TCE), a related supply chain management (SCM) concept model is developed to describe the effect of the asset specificity and contract complexity on the alliance cooperation. Then, empirical analysis is carried out by using software packages SPSS15.0 and AMOS7.0. Results show that the higher the asset specificity is, the more the members in the alliance tend to have a complex business contract. Also, both the asset specificity and contract complexity have a significant effect on the performance and risk of the alliance. In this way, the results obtained in this paper reveal the governance mechanism of the contracted alliance cooperation.

Key words: strategic alliance, governance mechanism, asset specificity, contract complexity, cooperation performance, cooperation risk