This paper seeks to propose the examination of the importance of firms' intention to e‐collaborate in facilitating e‐collaboration for an informal alliance.
A rigorous review of the existing literature is undertaken for the purpose of developing a contingency framework that determines firm boundaries.
The conceptual framework posits that three decision contexts (the threat of opportunism, the threat of commercial failure, and the opportunity for sustainable advantage) are predictors of selecting the governance mode between e‐collaboration and arm's‐length relationship, and that an intention to e‐collaborate moderates the governance mode choice.
Testable propositions are offered to examine the proposed relationships in the framework. The paper concludes by suggesting that firms which would like to implement e‐collaboration in a group of companies must initiate and strengthen their intention to form the desired governance mode.
