Determinants of governance structure in alliances: the role of strategic, task and partner uncertainties

Research in transaction cost economics and structural sociologyhas emphasized the role of opportunism and trust in the choicebetween equity and non-equity governance forms in alliances.This paper suggests that the uncertainty surrounding partnercooperation is not straightforwardly predictive of governancestructure in alliances. Instead, task uncertainty and strategicuncertainty associated with the activities performed withinalliances induce coordination and adaptation requirements thatare important determinants of alliance governance, independentlyof partner uncertainty. Support for this view is provided basedon a 12-year panel of alliances formed in the US telecommunications,entertainment and computer industries.