One of the fastest growing trends in business today is the increasing number of interorganizational relationship (e.g.,
strategic alliance and joint venture) to more effectively conduct business. As the interorganizational relationships are
not static, the dynamics in these relationships are frequently found such as a dissolution of the relationship and a
revival of once broken relationship. However, many extant studies in interorganizational relationships have focused
on the static conditions of the relationship based on power-dependence theory, transaction cost theory, agency theory,
and relational contracting theory. This paper aims to address the limitations of previous research on interorganizational
relationships by proposing a new conceptual framework of how organizations begin dissolutions and renew
once broken relationships from the perspective of new institutional economics by using triadic market structure
(Buyer - Level 1 supplier - Level 2 supplier).