Just Procedures and Social Relations to Cement Loose Coupling: The Case of Alliances

Abstract

We examine the extent to which common elements in partner firms’ organizational culture, structure, and decision making philosophies tighten the loose coupling. We examine the roles played by procedural justice and social relations as intervening connectors in this means-end relationship. We test our model from a sample of Korean firms seeking to enhance their competitiveness through alliances to examine if the relationship in the model enhances the ends of an alliance, which is to fulfill its strategic goals. Our results show that similarity in partner firms enhances the achievement of alliance goals. The intervening means for this positive relationship is explained by partners having fair procedures to guide the formulation and implementation of the relationship as well as relational processes that integrate the partners.