Alliance coordination effectiveness and the performance of international strategic alliances: development of the partnership and moderating role of market environment turbulence

The purpose of this dissertation was to investigate post-international strategic alliance (ISA) formation issues, which have been neglected in the ISA literature. The specific research questions were 1) how do ISA partners develop their relationships? 2) how does this relationship development impact effective management of resources contributed by each ISA partner? and 3) how does effective resource management influence ISA performance? Data were collected by mail and web surveys from those who were/are involved in ISA operations. Structural equation modeling using LISREL was employed to test the conceptual model and multiple regression analysis was adopted to test the moderating effects in the model. The model was modified by introducing second order factors to correctly interpret the relationships between factors and achieve a more parsimonious model. Results indicate that alliance partnership interactions between ISA partners (i.e., reciprocity, transparency, formal and informal communication, two-way and participative communication, and cultural sensitivity) positively influenced the development of desire for joint action between them which is based on trust and commitment. Desire for joint action positively influenced alliance coordination effectiveness (ACE: integration and utilization of resources) which underlies effective resource management between ISA partners. ACE positively affected ISA performance. Market environment turbulence (i.e., host government interference and technology turbulence), however, did not have moderating effects between ACE and ISA performance. The first question was answered by introducing alliance partnership interaction factors which influence the building of the positive relationship between ISA partners. The introduction of ACE explained how ISA partners manage the resources provided by each partner. The significant impact of ACE on ISA performance and the nonsignificant impact of the moderating variables indicate that ACE has strong impact on ISA performance that can absorb the effects of host government interference and technology turbulence in the operation of ISAs.