Handbook on International Alliance and Network Research
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Handbook on International Alliance and Network Research

  • Research Handbooks in Business and Management series

Edited by Jorma Larimo, Niina Nummela and Tuija Mainela

Over the past few decades, alliance and networks have been generally examined individually. This Handbook sheds new light on this research by combining the two topics and focuses on highlighting their similarities. The expert contributors discuss topics surrounding the state-of-the-art in alliance and network research, conceptual development in alliance and network research and empirical evidence of international alliances and networks. They combine diverse types of studies including literature reviews, conceptual papers and empirical studies in order to provide the reader with a comprehensive understanding of the topic.
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Chapter 10: Dynamic contracting scenarios in international strategic alliances: inter-temporal culturally sensitive incentive schemes

Ursula F. Ott

Abstract

This chapter studies repeated contracting in international strategic alliances on the basis of information asymmetries owing to different cultural, organizational and/or technological backgrounds. The theoretical underpinning shows that these problems are embedded in the theoretical paradigms of contract theory. In general, the alliance partners have several options to take into account the uncertainty about ability and effort of the other players and the impact on the durability of the alliance. The complexity of multi-person decision-making is reflected in incentive schemes for the stages of an alliance life cycle. This dynamic contracting scenario should avoid cheating and enhance cooperation in terms of contributions and expertise in the stages of the life cycle. The outcome is the design of inter-temporal, culturally sensitive contracts.

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