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Factors affecting a partner's perceived effectiveness of strategic business alliance: some Singaporean evidence

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  • Ramaseshan, B.
  • Loo, Puay Choon

Abstract

Given functional specialisation and a scarcity of resources, organisations would seek to reduce environmental uncertainty by entering into strategic alliances with other organisations for exchanging resources for mutual benefit. This paper investigates the factors affecting a partner's perceptions about the effectiveness of their strategic business alliances. The factors investigated were inter-organisational trust, commitment to alliance, inter-organisational communication, dysfunctional conflict and power imbalances. Data was collected from a representative sample of Singapore-based companies that were involved in some form of strategic business alliances. The study found that the factors "commitment to alliance", "inter-organisational communication" and "inter-organisational trust" were positively related to a partner's perceived effectiveness of their alliances. On the other hand, the factors "dysfunctional conflicts" and "power imbalances" were found to have a negative relationship with the partner's perceived effectiveness of their alliance. The five factors together explained 54% of the variance in the perceived effectiveness of alliance. The implications for managers are outlined.

Suggested Citation

  • Ramaseshan, B. & Loo, Puay Choon, 1998. "Factors affecting a partner's perceived effectiveness of strategic business alliance: some Singaporean evidence," International Business Review, Elsevier, vol. 7(4), pages 443-458, August.
    • Handle: RePEc:eee:iburev:v:7:y:1998:i:4:p:443-458
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    References listed on IDEAS

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    1. Mariti, P & Smiley, R H, 1983. "Co-Operative Agreements and the Organization of Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 31(4), pages 437-451, June.
    2. J Michael Geringer & Louis Hebert, 1991. "Measuring Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(2), pages 249-263, June.
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    Cited by:

    1. Marius G. Gehrisch & Stefan Süß, 2023. "Organizational behavior in international strategic alliances and the relation to performance – a literature review and avenues for future research," Management Review Quarterly, Springer, vol. 73(3), pages 1045-1107, September.
    2. Kwon, Yung-Chul, 2008. "Antecedents and consequences of international joint venture partnerships: A social exchange perspective," International Business Review, Elsevier, vol. 17(5), pages 559-573, October.
    3. Jha, Anand & Kim, YoungJun & Gutierrez-Wirsching, Sandra, 2019. "Formation of cross-border corporate strategic alliances: The roles of trust and cultural, institutional, and geographical distances," Journal of Behavioral and Experimental Finance, Elsevier, vol. 21(C), pages 22-38.
    4. Liu, Chia-Ling (Eunice) & Ghauri, Pervez N. & Sinkovics, Rudolf R., 2010. "Understanding the impact of relational capital and organizational learning on alliance outcomes," Journal of World Business, Elsevier, vol. 45(3), pages 237-249, July.

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