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100 _aAbdi, Majid
_928313
245 _aLocus of Uncertainty and the Relationship Between Contractual and Relational Governance in Cross-Border Interfirm Relationships
300 _a771-803 p.
520 _aThe relationship between contractual and relational arrangements in interorganizational relationships has been subject to an ongoing debate. We propose that in the context of cross-border partnerships, the governance mechanisms can be both substitutes and complements depending upon contingencies posed by uncertainties of two different origins: environmental and behavioral. We argue that environmental uncertainty (i.e., instability and unpredictability of the external environment) drives the formal and relational arrangements into a more substitutive relationship by elevating the adaptation complications in which increasing reliance on either form of governance inhibits the effective operation of the other. Contrastingly, behavioral uncertainty (in the form of inadequate common grounds and shared frameworks among collaborating firms) encumbers the understanding of partner behavior and conduct and drives the governance mechanisms into a more complementary relationship in which contractual and relational mechanisms facilitate the effective operation of each other. Empirical results from 205 cross-border partnerships of large U.S. firms support our theorized relationships.
653 _aInterfirm Governance
653 _aCross-Border Alliances
653 _aFormal Contracts
653 _a Relational Governance
653 _aBehavioral Uncertainty
653 _aEnvironmental Volatility
700 _aAulakh, Preet S.
_928314
773 0 _029017
_965528
_aDEBORAH E. RUPP
_dWEST LAFAYETTE SAGE PUBLICATION 2012
_o5557180
_tJOURNAL OF MANAGEMENT
_x 0149-2063
856 _3Volume: 43 issue: 3, page no.: 771-803
_uhttp://journals.sagepub.com/doi/full/10.1177/0149206314541152
942 _2ddc
_cJA-ARTICLE