Control And Alliance Performance Risk In R&D Alliance - The Mediating Effect Of Trust

Based on a study of R&D alliance in Chinese automotive industry, alliance performance risk was found to be strongly influenced by alliance control as mediated by trust. The findings show that: (a) Communication of informal control has a significant indirect negative effect on performance risk in R&D alliance. Trust will fully mediate the relationship between communication of informal control and alliance performance risk, (b) Fair cooperation of informal control has a direct negative effect on performance risk in R&D alliance. (c) Dependency and sharing/mutual support of informal control doesn't have significant negative effect on performance risk in R&D alliance. (d) Formal contract control has a significant indirect negative effect on performance risk in R&D alliance. Trust will fully mediate the relationship between Formal contract control and alliance performance risk. (e) Performance risk in R&D alliance will be reduced significantly by formal dispute control, trust will partially mediate the relationship between formal dispute control and alliance performance risk. Finally, we offer brief comments on managerial implications.