Procedural fairness and interfirm cooperation in strategic alliances

Yadong Luo

Research output: Contribution to journalArticlepeer-review

162 Scopus citations


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
Issue number1
StatePublished - Jan 2008


  • Interfirm cooperation
  • Procedural justice
  • Strategic alliance

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management


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