Chapter 18: Teaching Cognitive Development

The purpose of this chapter is to provide decision makers in strategic alliances a risk-time framework to (a) categorize types of potential deceitful behaviors by partners, and (b) adopt appropriate deterrence mechanisms to curb and control such behavior. The chapter identifies four types of deceitful behavior, based on: the degree of relational risk that characterizes interactions of a firm with its alliance partner; and the length of the deceit horizon. It also suggests a number of deterrence mechanisms for controlling the different types of deceitful behavior, with the aim of enhancing confidence in partner cooperation in alliances. The chapter provides a practical template for alliance managers to decide what kinds of deterrence mechanisms to adopt on the basis of the type of perceived deceitful behavior of alliance partners. It also responds to an unmet need of managers with alliance responsibilities for a framework to help select the most effective mechanisms to deter different kinds of potential deceitful behavior of alliance partners.