A study on relative importance of economic incentive and partner’s trust under different type of strategic alliances---- an example of Taiwan soft drinks industry
Authors: Long-Yi Lin, Ing-San Hwang, Ching-Sung Wu
Journal: Chiao Da Management Review. Dec. 2004, 24(2): 1-35.
Keywords: Outsourcing; Strategic alliance; Types of strategic alliance; Economic
This essay explore whether the difference exist between relative importance of economic incentive and partner’s trust under
different types of strategic alliance. This essay can be divided into two parts. The first part is the case study, the result
was that there are five types of strategic alliances existing in the Taiwan soft drinks industry, hereinafter referred to as
“Production Contract I”, “Production Contract II”, “Distribution Agreement”, “Product Extension” and “Brand Authorization”. A
mail survey approach was used in the second part, resulting in the following findings: Companies, which chose “Production
Contract I” and “Production Contract II” considered economic incentive more important than alliance partners’ trust.
Companies, which chose “Distribution Agreement”, determined alliance partners’ trust more important than economic incentive.
Companies, which chose “Product Extension” and “Brand Authorization”, considered alliance partners’ social relationship more
important than economic incentive.