Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances
Non-equity alliances have become important vehicles to collaborate with external partners, particularly in the biopharmaceutical industry. To guide these collaborations effectively, partners are using contracts to custom-build jointly staffed managerial units with clearly demarcated decision-making responsibilities. In this article, the authors discuss their research on the conditions that most often favor setting up a steering committee. They suggest that joint administrative control through these committees provides distinct benefits for companies that might otherwise run up against high levels of uncertainty and put proprietary knowledge at risk.