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Zineldin, M., Fujimoto, H., Li, Y., Kassean, H., Vasicheva, V., & Yu, W. F. (2015). Why Do Both Marriages and Strategic Alliances Have over 50% Failure Rate? A Study of Relationship Quality of Strategic Alliances in China, Japan and Mauritius. International Journal of Strategic Business Alliances, 4, 1-23.
https://doi.org/10.1504/IJSBA.2015.069305

has been cited by the following article:

• TITLE: The Value of Trust and Fairness in Alliances: An Economic Perspective

  AUTHORS: Kiridaran Kanagaretnam, Alex Thevaranjan

  KEYWORDS: Business Alliances, Trust, Fairness, Mathematical Modelling, Synergy

  JOURNAL NAME: Theoretical Economics Letters, Vol.11 No.2, March 30, 2021

  ABSTRACT: In this paper, we develop an analytical model to illustrate the role of trust and fairness in alliances and quantify their economic value to alliance partners. We show that alliance profits and the individual firms’ profits are greatest when partners trust and deal fairly with each other. Moreover, trusting and fair dealing partners benefit the most from the synergies of joint production. We also show that when partners do not trust each other, the alliance profits are reduced by a large amount. The alliance potential is further destroyed if partners do not deal fairly with each other in addition to not trusting each other. The lack of trust and fair play causes firms to fight for control. The fight may result in conflict between the two partners or the emergence of a dominant partner. In the dominant partner case, we show that only alliances with high levels of synergy will be formed. But even then, the dominant partner will realize only a small portion of the benefits from synergy.