“…Earlier studies have typically examined relatively broad categories of governance, like equity versus non-equity arrangements (e.g., Gudergan et al, 2003;Lui and Ngo, 2004;Wang and Nicholas, 2007) or alliances as a form of governance as opposed to mergers and acquisitions (e.g., Hagedoorn, 1993). In this study, however, we contribute to the literature that examines the factors that explain how such organisational forms emerge (e.g., Nielsen, 2003;Ouchi, 1979Ouchi, , 1980Ouchi and Johnson, 1978;White and Lui, 2005) and how a firm's use of certain levels of complexity in their contractual agreement affects the particular organisational form in an alliance.…”