ORGANIZTIONAL DIFFERENCES

,RELATIONAL MECHANISMS AND

ALLIANCE PERFORMACE

PRITI SINGH
 INTRODUCTION

Alliance - voluntary arrangement among independent firms that exchange or share resource for
co-development or provision of products and services .
KEYS AREAS OF RESEARCH :-
1. Role in alliance performance
2. Effects of alliance management
 GAP analysis

Pre research Post research

Relations mechanism and
organizational differences
evolve naturally with
partner joint experience
Partner organization
differences is
underdeveloped
Latent organizational
differences ,the partner can
overcome some
impediments associated
with joint development of
relational mechanisms
Systematic and shift focus
from cultural differences to
implications of differences
 Hypothesis

1. The performance of non equity alliance will be positively related to the

strength of relational mechanisms in the alliance.
2. The greater the differences in alliance partner management style, the
weaker will be the relational mechanisms in non equity alliance
3. The grater the differences in the alliance partner’s organizational
responsiveness ,the weaker will be the relational mechanisms in non
equity alliance
4. The grater the differences in the alliance partner’s internal task ,the
weaker will be the relational mechanisms in non equity alliance
5. The grater the differences in the alliance partner’s marketing routines
,the weaker will be the relational mechanisms in non equity alliance
6. Recognition of organizational differences between alliance partners will
attenuate the negative association between organizational differences
and the strength of relational mechanisms in the alliance.
 Methods

 Sample selection and data collection

 Preliminary flied interviews-construct
 Tested hypothesis by surveys (Questionnaire )
 Scale – multiple prior studies
 Sample size 420 (Oct 2005-June 2006)
 3 firms :-cadence Design , NI& Vignette
 Likert scale (1 strongly disagree -7 strongly agree)
 Measures

 All factor value >0.5 & reliability tested by Convergent validity

 Discriminant analysis to measure variable differ
 AVE >shared variance
 Model tested by SEM
 CFI=0.98,GFI=.97,NFI=.97,IFI=.98
 Parameter estimate using t-statistics
 Result

 Hypothesis -1 –positively relation to alliance

performance (beta =-92,p<0.001)
 Hypothesis -2 not significant ( bet =-0.09,P<0.05)
 Hypothesis -3 ,marginally significant (beta=-
0.05,p<0.05)
 Hypothesis -4 Accepted Null Hypothesis (beta =-
0.14,p<0.001)
 Hypothesis -5 No significant Evidence
 Hypothesis -6 partial significant
 Discussion

 Similarity in partners organization is vital for

alliance success
 Differences in partners attitude to external
shareholders and markets leads to relational
mechanism.
 Organizational routine are path dependent &cannot
be easy to change
 Suggestion

 Alliance partners develop relational mechanisms by

leveraging correct partner selection .
 Partner can enhance performance by organizational
difference
 Non equity alliance can be effective when partner
posses culture as long as their organization routine
aligned