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Mellewigt, Thomas and Decker, Carolin
(2014).
DOI: https://doi.org/10.1007/s11573-013-0691-3
Abstract
This study examines the costs of alliance partner search and selection and their antecedents. Drawing on transaction cost economics and the network perspective on inter-organizational relationships, the findings drawing on survey-based data from a sample of 83 firms in the German telecommunications industry reveal that partner search and selection costs are closely connected but differentially affected by task- and company-related factors. When firms must make alliance-specific investments, search and selection costs increase. A firm’s number of current alliances decreases them, while neither alliance scope nor firm performance significantly affect search and selection costs. Additional analyses show that alliance-specific investments especially increase search costs but do not affect selection costs, while the initiating firm’s performance decreases search costs but it does not reduce selection costs.