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.