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A System Dynamics Model of Trust, Knowledge Sharing and Stability of Strategic Alliance

Author

Listed:
  • Chinho Lin

    (National Cheng Kung University, Taiwan)

  • NguyenDong-Thai Dao

    (National Cheng Kung University, Taiwan)

Abstract

Purpose: We present a comprehensive framework of the key determinants of the stability in strategic alliances (SAS). Herein the relationship of triad: trust, knowledge sharing and stability is digged dramatically. Design/methodology/approach: We propose a dynamics framework of stability in SAS based on a review of the literature. The game theory concept is adopted in the conceptual framework. The simulation is based on the system dynamics and characterizes how the constituent elements of the strategic alliance behave. Findings: The major finding of this paper is that result from the literary verbal analysis can be transferred into a dynamics model which can be used to fulfill determinants of the stability of strategic alliance. Practical implications: Based on the framework, a number of propositions are developed to facilitate empirical research on trust, knowledge sharing and stability in SAS. Managerial implications from the framework are also discussed. Originality/value: The value of this paper is literary verbal analysis can be transferred into a dynamics model which can be used to fulfill determinants of the stability of the strategic alliance. We find out that in case of low trust and high level of the un-balance knowledge sharing the strategic alliance became extremely unstable and vise versa.

Suggested Citation

  • Chinho Lin & NguyenDong-Thai Dao, 2013. "A System Dynamics Model of Trust, Knowledge Sharing and Stability of Strategic Alliance," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management,, ToKnowPress.
    • Handle: RePEc:tkp:tiim13:s5_15-27
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    References listed on IDEAS

    as
    1. Bernard Garrette & Pierre Dussauge & W. Mitchell, 2004. "Asymmetric performance: the market share impact of scale and link alliances in the global auto industry," Post-Print hal-00458748, HAL.
    2. T.K. Das & Rajesh Kumar, 2009. "Interpartner harmony in strategic alliances: managing commitment and forbearance," International Journal of Human Rights and Constitutional Studies, Inderscience Enterprises Ltd, vol. 1(1), pages 24-52.
    3. Gee W. Bock & Young-Gul Kim, 2002. "Breaking the Myths of Rewards: An Exploratory Study of Attitudes about Knowledge Sharing," Information Resources Management Journal (IRMJ), IGI Global, vol. 15(2), pages 14-21, April.
    4. Richard J. Arend & Darryl A. Seale, 2005. "Modeling alliance activity: an iterated prisoners' dilemma with exit option," Strategic Management Journal, Wiley Blackwell, vol. 26(11), pages 1057-1074, November.
    5. Aimin Yan & Ming Zeng, 1999. "International Joint Venture Instability: A Critique of Previous Research, A Reconceptualization, and Directions for Future Research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(2), pages 397-414, June.
    6. Jiang, Xu & Li, Yuan & Gao, Shanxing, 2008. "The stability of strategic alliances: Characteristics, factors and stages," Journal of International Management, Elsevier, vol. 14(2), pages 173-189, June.
    7. Das, T. K. & Teng, Bing-Sheng, 2001. "A risk perception model of alliance structuring," Journal of International Management, Elsevier, vol. 7(1), pages 1-29.
    8. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    9. Pierre Dussauge & Bernard Garrette & Will Mitchell, 2004. "Asymmetric performance: the market share impact of scale and link alliances in the global auto industry," Strategic Management Journal, Wiley Blackwell, vol. 25(7), pages 701-711, July.
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