“…Forming alliances has been a popular strategy among firms over the past two decades (Kayo, Kimura, Patrocínio, & Oliveira, 2010;Lazzarini, Brito, & Chaddad, 2013;Lioukas, Reuer, & Zollo, 2016;Silva, Dacorso, Costa, & Di Serio, 2016), and since then substantial attention has been drawn to the selection of an appropriate governance form, in particular the equity versus nonequity modes (Choi & Contractor, 2016;Colombo, 2003;García-Canal, Valdés-Llaneza, & Sánchez-Lorda, 2014). Simply put, an equity alliance refers to a new jointly-financed and managed entity that allying firms create, while a nonequity alliance is a contractual agreement without setting up a separate legal entity in the cooperation (Pisano, 1989;Oxley, 1999).…”