This paper experimentally investigates the determinants
of the deviation between potential and realized value
creation in strategic alliances. To better understand
how decision making in alliances may influence success,
we use an experimental design that juxtaposes two
important factors that affect alliance members’
decisions: economic incentives and communication. The
evidence derived from our experimental design sheds
light on the relative impact of each, and importantly,
how both factors interact to explain the probability of
successful outcomes in an alliance. These empirical
results are robust to the use of undergraduates, MBAs
and seasoned executives who averaged over 20 years of
work experience. 2007. pdf
