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

Value creation through alliances requires the simultaneous pursuit of partn ers with similar characteristics on certain dimensions and different charac teristics on other dimensions. Partnering firms need to have different reso urce and capability profiles yet share similarities in their social institu tions. In this article, the authors empirically examine the impact of partn er characteristics on the performance of alliances. In particular, they tes t hypotheses related to both direct impact of partner characteristics on al liance performance and indirect effects through relational capital aspects of the alliance. Empirical results based on a sample of alliances in the gl obal construction contracting industry suggest that complementarity in part ner resources and compatibility in cultural and operational norms have diff erent direct and indirect effects on alliance performance. Accordingly, org anizational routines aimed at partner selection need to be complemented by relationship management routines to maximize the potential benefits from an alliance.