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Papers by Jose de la Torre

Author: Hallam, Steven J. Konstantinidis, Konstantinos T. Brochier, Celine Putnam, Nik Schleper, ... more Author: Hallam, Steven J. Konstantinidis, Konstantinos T. Brochier, Celine Putnam, Nik Schleper, Christa Watanabe, Yoh-ichi Sugahara, Junichi Preston, Christina de la Torre, Jose Richardson, Paul M. DeLong, Edward F. ... Permalink: http://escholarship.org/uc/item/ ...

The purpose in this series of papers is to examine different perspectives on the evolution of the... more The purpose in this series of papers is to examine different perspectives on the evolution of the process of collaboration and the management challenges therein by focusing on a single case experience. The literature on alliance and collaboration has grown immensely in the last few years. Much attention has been given to the economic rationale for intermediate organizational forms, the so-called "swollen middle" that lies between market and hierarchical solutions, and to the conditions under which such structures are optimal . More recently, there has been a virtual explosion in the treatment of the managerial challenges involved in inter-firm collaboration, ranging from issues of negotiation and conflict resolution to the role of strategic intent or prior experience, as well as numerous attempts to conceptualize and measure that most ephemeral and abused concept, trust (1).

In this paper we develop the concept of relational quality as a proxy for relational trust. Explo... more In this paper we develop the concept of relational quality as a proxy for relational trust. Exploration of data from 67 alliances confirms that relational quality is composed of three elements: initial conditions, partner interactions, and external events. We offer propositions on the relative importance these elements take depending on the different roles relational trust may play in strategic alliances: the role of a control mechanism, of a governance mechanism, or as an enabler of high risk initiatives.

The management literature has often argued that "trust" plays a key role in economic exchanges, p... more The management literature has often argued that "trust" plays a key role in economic exchanges, particularly when one or another party is subject to the risk of opportunistic behavior and incomplete monitoring, or when problems due to moral hazard or asymmetric information arise. These conditions are almost always present in the case of corporate alliances and joint ventures. We propose that one aspect of trust, what we call "relational quality," is fundamental to the maintenance of good working conditions in two-party alliances where past experience and the shadow of the future play important roles. Relying on a growing body of theory and a number of case studies, we develop a framework for thinking about trust in dynamic and practical terms. We conclude that a reservoir of relational quality exists in any such relationship, and that the level of trust implied in such a reservoir will not only influence whether and how future conflicts are resolved, but also is in itself affected by the positive (or negative) resolution of such conflicts. Finally, we identify three elements that contribute to the relational quality reservoir in alliances: 1) the initial conditions surrounding the alliance formation; 2) the cumulative experiences of the parties with each other's behaviors as the alliance unfolds; and 3) the impact that external events or behaviors outside the alliance's context have on the perceptions and attitudes the parties have about each other's trustworthiness. We conclude with some recommendations for more effective management of corporate alliances.

The organizational literature has always posited that "trust" plays a key role in economic exchan... more The organizational literature has always posited that "trust" plays a key role in economic exchanges, particularly when one or another party is subject to the risk of opportunistic behavior, incomplete monitoring, or when moral hazard problems arise. These conditions are almost always present in the case of alliances and joint ventures between independent parties. This paper explores the concept of "relational quality" in one such interorganizational form -dyadic alliances -where past experience and the shadow of the future play an important role. Relational quality is important, as it affects the extent to which partners substitute reliance on trust for more formal control mechanisms. Building on theory, case studies and survey data, we develop a framework for thinking about trust in dynamic and practical terms. We define three elements affecting relational quality in alliances: the initial conditions surrounding the exchange, the cumulative experiences of the parties with each other's behaviors as they interact, and the impact that external events have on perceptions of behavior and attitudes of the parties about each other's trustworthiness. We use data on a sample of alliances with one Spanish partner to explore the relative impact of these elements and develop a more precise set of propositions from this framework. The paper should guide further work towards quantifying the role of trust as a control mechanism in the performance of strategic alliances. issues related to inter-organizational collaboration and trust currently dominate much of the management literature. The five volumes just mentioned are being followed by this issue of Organization Studies on trust, and a special issue of the Strategic Management Journal on strategic networks. These comprehensive collections of conceptual and empirical research on these two topics build on an impressive foundation of economic and behavioral studies laid during the last ten years (1). Furthermore, the international business literature goes back even further in its examination of the role and durability of joint venture structures (2).