Hu, Tianyou and Jain, Amit and Delios, Andrew (2021) Centrality Asymmetry and Partner Complementarity as Influences on Alliance Dissolution. British Journal of Management, 32 (1). pp. 59-79. ISSN 1045-3172

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Abstract

Research on interfirm alliances indicates that partner firms’ asymmetry in network centrality increases the likelihood of alliance dissolution because it gives rise to a power imbalance and opportunism in the partnership. We contend that this view of centrality asymmetry does not consider the binding force that network resource complementarity can provide in an alliance, which motivates partners to ally for the long term. We propose that centrality asymmetry can have both divisive and cohesive forces in an alliance, which – when considered together – lead to a prediction that centrality asymmetry has a U-shaped relationship with alliance dissolution. Moderate levels of asymmetry lead to lower rates of dissolution than high and low levels of asymmetry. The degree of cooperation between partners and the degree of external competition reduce the effects of centrality asymmetry on alliance dissolution because they mitigate power imbalances while encouraging partners to strengthen the alliance to withstand competitive challenges.

Item Type:	Article
Keywords:	Alliances; Asymmetry; Business; Centrality; Complementarity; Complementarity (physics);
Academic Unit:	Faculty of Social Sciences > School of Business
Item ID:	18331
Identification Number:	https://doi.org/10.1111/1467-8551.12440
Depositing User:	Bridie O'Neill
Date Deposited:	28 Mar 2024 12:08
Journal or Publication Title:	British Journal of Management
Refereed:	Yes
URI:	Publisher
Use Licence:	This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

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