Does CSR Matter for Alliance Formation? The Role of Capability Complementarity and Institutions

Alliance formation has been a major research stream in the strategy literature. Firms ally to reduce transaction costs, leverage their network positions, enhance their legitimacy, and access complementary resources. This paper highlights the role of firm-level social responsibility capabilities as important criteria for alliance partner selection. We argue that, holding other factors constant, the fit between the social responsibility capabilities of firms will enhance the likelihood of alliance formation. Furthermore, we discuss the effect of institutional factors that affect this likelihood.