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Abstract

This paper focuses on strategic fuzzy alliances (SFAs) and the role of trust in business-to-business relationships. First, a theoretical model of governance choice involving strategic alliances is developed, integrating the Shapiro, Sheppard, and Cheraskin (1992) taxonomy of trust into a neoinstitutional framework. Second, this model, based on transaction theory, is then used to generate necessary and sufficient conditions for trust-based agreements. The third component of this paper is an empirical model, which tests the above theory. Finally, managerial implications from the results are discussed.

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