Discussion of Integrated Information Systems, Alliance Formation, and the Risk of Information Exchange between Partners

Abstract

ABSTRACTChrist and Nicolaou (2016) develop a model predicting that when firms are engaged in alliances with multiple objectives, they are more likely to use Integrated Information Systems (IIS) and more extensive formal controls to manage alliance risk. In addition, they hypothesize that higher levels of IIS are associated with lower information exchange risk and subsequently lower overall alliance risk. Finally, they argue that the relationship between IIS and information exchange risk is mediated by alliance formalization (i.e., the use of formal controls). They test the model using a survey of 116 chief financial officers from U.S. public companies with strategic alliance activity. In this discussion paper, I highlight the main contributions of Christ and Nicolaou (2016), discuss some concerns, and provide some suggestions for future studies.