How tight an embrace? Choosing the optimal degree of partner interaction in alliances based on risk, Technology characteristics, and Agreement provisions

This study addresses a key question in alliance negotiations: "How tight or loose a relationship do we wish to have with our partner?" Interaction with one's partner is necessary in order to coordinate operations, to effectively transfer tacit knowledge, to monitor for opportunism, to maximize joint synergestic value, and to make sure that an appropriate share of the net benefit created by the alliance is appropriated by the technology provider. But too tight an "embrace" or too high a degree of interaction between the allies can increase coordination costs, and increases the chances of unintended technology leakage. The sample comprised 88 international alliances entailing technology transfers. The study regresses a five point dependent variable tracking rising levels of interaction between the partners, against explanatory variables drawn from (1) Technology characteristics and future technology policy, (2) Coordination costs and risks, (3) Agreement provisions, and (4) Firm and Sector Characteristics, in order to answer the question "What is the optimum level of inter-partner interaction?".