Forms of Interorganizational Governance for Multinational Alliances

Abstract

This study drew upon complementary work in transaction cost economics, organization theory, and international corporate strategy studies to examine governance forms for multinational alliances. An analysis of 153 new alliances suggested that the selection of a contractual agreement or a joint venture as a form of governance was influenced by the intent to conduct R&D and the technological intensity of the alliance's product area alone and in interactive combination with the size of the parent firms.