The Role of Trust and Contractual Safeguards on Cooperation in Non-equity Alliances

  title={The Role of Trust and Contractual Safeguards on Cooperation in Non-equity Alliances},
  author={S. Lui and H. Ngo},
  journal={Journal of Management},
  pages={471 - 485}
  • S. Lui, H. Ngo
  • Published 2004
  • Business
  • Journal of Management
  • Because partners may behave opportunistically in alliances, contractual safeguards or trust between partners are necessary for successful outcomes. However, it remains controversial whether safeguards and trust substitute or complement each other. Drawing on transaction cost theory, this study conceptualizes both contractual safeguards and trust as important control mechanisms in non-equity alliances, and develops a model that relates contractual safeguards and trust to cooperative outcomes. We… CONTINUE READING
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