Built to Last but Falling Apart: Cohesion, Friction, and Withdrawal from Interfirm Alliances

Although models of alliance network dynamics have focused primarily on alliance formation, this study advances research by investigating member withdrawal from alliances. We develop a model of cohesion and friction at the relationship, network, and market levels and propose cross-level cohesion and time-varying effects on member withdrawal, giving predictions that are distinct from those of alliance formation studies. Our analysis of alliances in the global liner shipping industry showed greater withdrawal rates as a result of market competition and time-dependent effects of prior direct and third-party ties, suggesting that member withdrawal has both social and task-related causes.

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