In the short-run, firms can gain some advantages by cheating their alliance partners but research suggests that cheating does not pay in the long run.

Question

Quizplus · Accepted Answer

Research has shown that cheating on alliance partners may offer short-term benefits, but in the long run, it can harm the reputation of the cheating firm and damage the partnership. Trust is a crucial component of successful partnerships, and cheating violates that trust, leading to negative consequences in the future.

In the Short-Run, Firms Can Gain Some Advantages by Cheating