Forging an Alliance and Crafting a Contract

When two companies band together to form an alliance, and sit down to negotiate the contract, what exactly determines the contract’s content? And why are some contracts so much more complex than others? The paper “Strategic Alliance Contracts: Dimensions and Determinants of Contractual Complexity” examines the complexity of contractual provisions. It determines the importance of several factors that influence the design of collaborative agreements: the assets that each company brings into the relationship, the duration of the alliance, prior ties and trust.

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