STRATEGIC ALLIANCES

Strategic alliances



Strategic alliances

Trust and commitment helps in building dependency between perceived structural and partner's dependency is a condition to develop and maintain social dynamics between the relationships. Trust is built mainly on economic and considered cooperation to perceive affective and social dimensions as its powerful forces. Trust perceives commitment to the relationship based on high levels of trust.

Trust is suggested as the connecting mechanism which facilitates coordination and cooperation and generates relationship commitment. It is a prerequisite for successful strategic alliances. Trust is a chemistry which allows alliances to be productive and affects the bargaining power of partners (Rigsbee, 2000, 178-199). It fills on the relationship with value. Over time, dependent transactions are negotiated and equally may develop trust, commitment to manage the relationship.

Trust is a comfortable mode of control and it includes a set of shared anticipations and obligations that provides an, flexible, effective and informal mode of coordination that is not available in formal connections in business. Trust is a relationship established when expectations are developed for one party and on the other hand are fulfilled by the other. Trust is built on two components that characterize interpersonal trust among managers in relationships these are affect based trust and cognition-based trust. In relationships cognition-based trust is built on the basis of peer dependability and reliability. Whereas, affect-based trust builds citizenship and need-based monitoring mechanisms in order to predict interpersonal behavior. Cognitive ties nurture structural content (structural bonds) and derive from knowledge about the partner's contribution to the relationship. This contribution is in the form of strategic, economic benefits and is complementary of resources.

Preliminary; levels of trust occur as a result of structural benefits resulting by the institutional nature of the relationship (Ring, 1992, 483-98). Partners in a coalition bound by the economic, tangible, and strategic ...