Strategic Alliances: Governance & Dispute Resolution Mechanisms

Strategic alliances, being creatures of contract as opposed to formal legal entities with their prescribed rules and requirements with respect to governance and termination, provide significant potential for opportunism and risks that one or both of the parties may appropriate the fruits of the pooling of resources and use them in ways that avoid the requirement to share profits among the parties.  This report examines how alliance partners can contain opportunism through careful drafting of governance and dispute resolution procedures.

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