A risk perception model of alliance structuring

Abstract

The literature on the strategic alliance structuring process does not provide an adequate view of the role of decision-makers in that process, especially about how alliance partners form their structural preferences. Given the critical role of structure in alliance management, the decision-making process regarding the choice of an appropriate alliance structure deserves particular research attention. We propose a model of strategic alliance structuring that has managerial risk perception as its core. Our model consists of the following parts: the antecedents of risk perception, relational risk and performance risk, risk perception and structural preference, and the resolution of preferences. We suggest that the structural preferences of partners are based on their perceptions of relational risk and performance risk, and the overall objective is to minimize the total risk. We also develop a number of propositions as elaboration of the model to facilitate empirical research and the effective management of the structuring process.Alliances Risk perception model Relational risk Performance risk Alliance structuring