UNCERTAINTY IN SELECTING ALLIANCE PARTNERS: THE THREE REDUCTION MECHANISMS AND ALLIANCE FORMATION PROCESSES

Abstract

Although previous research has reached an agreement that finding appropriate alliance partners and reducing selection uncertainty are important for achieving high alliance performance, it has not explored (1) how organizations reduce selection uncertainty, (2) what mechanism enables organizations to do so, and, more generally, (3) how organizations form alliances. This research examined these research questions by conducting fieldwork at 20 biopharmaceutical organizations in the Untied States. I identified three mechanisms for reducing selection uncertainty, including the (1) relational, (2) internal, and (3) contextual mechanisms. One of the findings implies that alliances do not always emerge out of embedded ties, and that there exist variations in organizational usage and reliance on ties and personal rapport in constructing interorganizational networks.