A Balanced Theory of Sourcing, Collaboration and Networks

In a synthesis of recent advances, this article gives a fresh, balanced theory of inter-organizational relations. It integrates competence and governance perspectives. It considers the choice between mergers/acquisitions and alliances. It offers a toolbox of instruments to govern relational risk, and the contingencies for their selection. Relationships can last too long. Therefore, the article also looks at how to end relationships. Beyond dyads of collaborating firms, it includes effects of network structure and position.