Abstract Achieving the equilibrium of contractual governance and trust is the hot topic in alliance governance research. Based on Transaction Costs Theory and Social Exchange Theory, this study explores the interplay of contractual governance and trust on different type of knowledge acquisition. The findings from a survey of 196 Chinese alliances demonstrate that contractual governance and trust will function as complementary constructs in explaining explicit knowledge acquisition, while they will function as substitutes of each other in explaining tacit knowledge acquisition. Moreover, it is suggested that long-term orientation positively moderate the interplay between contractual governance and trust on knowledge explicit acquisition.
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Received: 18 November 2015
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