The influence of complementarity, compatibility, and relationship capital on alliance performance

Value creation through alliances requires the simultaneous pursuit of partners with similar characteristics on certain dimensions and different characteristics on other dimensions. Partnering firms need to have different resource and capability profiles yet share similarities in their social institutions. In this article, the authors empirically examine the impact of partner characteristics on the performance of alliances. In particular, they test hypotheses related to both direct impact of partner characteristics on alliance performance and indirect effects through relational capital aspects of the alliance. Empirical results based on a sample of alliances in the global construction contracting industry suggest that complementarity in partner resources and compatibility in cultural and operational norms have different direct and indirect effects on alliance performance. Accordingly, organizational routines aimed at partner selection need to be complemented by relationship management routines to maximize the potential benefits from an alliance. MB Sarkar (Ph.D., Michigan State University) is an assistant professor of marketing at the University of Central Florida. His current research includes strategic alliances, innovation and entrepreneurship, knowledge management, and electronic markets. His research has been published in theStrategic Management Journal, theJournal of International Business Studies, and theJournal of Business Research, among others. Raj Echambadi (Ph.D., University of Houston) is an assistant professor of marketing at the University of Central Florida. His current research interests include investigation of territorial loyalty issues, management of innovations, and estimation issues pertaining to structural equation modeling and Partial Least Squares. His research has been published in theStrategic Management Journal, Multivariate Behavioral Research, and theJournal of Product Innovation Management. S. Tamer Cavusgil (Ph.D., University of Wisconsin) is University Distinguished Faculty and serves as the John William Byington Endowed Chair in global marketing at Michigan State University (MSU). He is also the executive director of MSU's Center for International Business Education and Research, a national resource center. His teaching, research, and administrative activities have focused on international business and marketing. His research has been published in theJournal of Marketing, theJournal of Marketing Research, and theJournal of International Business Studies, among others. His specific interests include the internationalization of the firm, global marketing strategy, and internationalization of business education. He was the founding editor of theJournal of International Marketing, now published by the American Marketing Association. Preet S. Aulakh (Ph.D., University of Texas at Austin) is an associate professor of strategy and international business at the Fox School of Business and Management, Temple University. His research focuses on international technology licensing, cross-border joint ventures and strategic alliances and strategies of firms from developing economies. His research has been published in theAcademy of Management Journal, theJournal of Marketing, and theJournal of International Business Studies.