The development of contractual norms in a bargaining situation under two types of stress

Abstract

This article empirically examines the structural antecedents proposed in the alliance and negotiations literatures: resource balance, alternatives balance, and stakes balance between Mexican and United States alliance partners in predicting the balance of authority in the relationship and the trust between partners. Fifty-five Mexican key informant perceptions form the basis for the research. The study finds that only resource balance is significant in predicting both authority balance and trust in these alliances, contrary to the received view based on theory and empirical work largely undertaken within the Triad. Trust was not found to mediate the relationship between resource balance and authority balance. Implications for researchers and practicing managers are provided.