Procedural fairness and interfirm cooperation in strategic alliances

Research output: Contribution to journalArticle

121 Citations (Scopus)

Abstract

This study applies the justice theory to address interpartner cooperation in strategic alliances. It emphasizes how procedural fairness as perceived by boundary spanners in these alliances influences cooperation outcomes. We theorize that procedural fairness improves cooperation results through enhancing relational value and curtailing relational risk in an environment characterized by both economic and social exchange. Our path analysis suggests that procedural fairness has a direct effect on operational outcome, but an indirect effect on financial outcome via increased trust driven by fairness. Procedural fairness contributes more to performance outcomes when strategic alliances are equity joint ventures than if they are contractual agreements. Theoretical and managerial implications arising from the findings are highlighted.

Original languageEnglish (US)
Pages (from-to)27-46
Number of pages20
JournalStrategic Management Journal
Volume29
Issue number1
DOIs
StatePublished - Jan 2008

Fingerprint

Economics
Procedural fairness
Strategic alliances
Interfirm cooperation
Path analysis
Boundary spanners
Direct effect
Relational risk
Indirect effects
Alliances
Equity joint ventures
Economic exchange
Fairness
Social exchange
Justice theory

Keywords

  • Interfirm cooperation
  • Procedural justice
  • Strategic alliance

ASJC Scopus subject areas

  • Business and International Management
  • Management of Technology and Innovation
  • Strategy and Management

Cite this

Procedural fairness and interfirm cooperation in strategic alliances. / Luo, Yadong.

In: Strategic Management Journal, Vol. 29, No. 1, 01.2008, p. 27-46.

Research output: Contribution to journalArticle

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