Strategic fit, contractual, and procedural governance in alliances

This paper focuses on the simultaneous mediating and moderating effects of different governance mechanisms on the relationship between conditions for alliance formation and outcome. Alliance governance takes two distinct forms: contractual integration and procedural coordination. While contracts may help set the legal parameters of the alliance agreement, it is day-to-day coordination of activities and processes that determine the effectiveness of such contracts. The proposed framework explains how knowledge outcome of collaborative relationships may be determined by the match of partner motives, influenced by the mix of contractual and procedural governance. A series of testable propositions helps answer the following question. Do combinations of contractual and procedural governance mechanisms, given specific strategic fit, explain knowledge performance differentials? (C) 2009 Elsevier Inc. All rights reserved.