ALLIANCE FROM: A TEST OF THE CONTRACTUAL AND COMPETENCE PERSPECTIVES.

This paper analyzes factors that influence firms' choice of the organizational forms of strategic alliances. I consider arguments suggested by both the contractual and the competence perspectives. In order to distinguish empirically between them, I devote special attention to the role played by the similarity of partner firms' technological specialization. In the empirical section I consider a sample composed of 271 equity joint ventures, non-equity bilateral and unilateral agreements established between each other in the period 1983-86 by 67 North American, European, and Japanese enterprises from the world's largest firms in information technology industries. I examine the effects on the choicer of alliance form of a measure of firms' technological proximity based on patents count, while controlling for other variables that are usually considered in the empirical literature. The estimate of binomial and multinomial logit models support the competence-based argument that in technological alliances divergence in partners' technological specialization results in a higher propensity to use equity forms. Overall, the findings suggest that both the contractual and competence perspectives provide valuable complementary insights into the determinants of alliance form. [ABSTRACT FROM AUTHOR]