| Abstract: | This paper examines the choice between equity and non-equity forms of inter-firm alliances from an ‘integrated risk’ perspective, which combines relational risk and performance risk in inter-firm alliances. Relational risk relates to co-operation among alliance partners, while performance risk has to do with the hazards of not achieving the performance objectives of an alliance, given co-operation. We suggest that equity alliance is adopted to control relational risk, while non-equity alliance is aimed at minimizing performance risk. Existing studies on the choice of alliance configurations are examined from the proposed risk perspective, and a number of key propositions are advanced for empirical testing and further development of the perspective. |
