Alliance management knowledge and alliance performance: unveiling the moderating role of the dedicated alliance function

Abstract

Abstract This study attempts to increase the understanding of how different solutions to build alliance management capability influence alliance performance. We propose that both reliance on the informal accumulation of alliance experience (i.e., tacit alliance management knowledge, AMK) and articulation of alliance know-how in the form of usable guidelines, checklists, or manuals (i.e., codified AMK) have an inverted U-shaped influence on alliance performance. Additionally, we investigate the moderating role of having the dedicated alliance function (DAF) on the curvilinear relationships between reliance on AMK and performance. Based on a sample of 113 large firms involved in strategic alliances, we find support for the inverted U-shaped relationship between reliance on tacit and codified AMK and alliance performance. Moreover, our results indicate that the DAF has a positive impact on the deployment of AMK. The DAF turns into improved performance when the reliance on experiential learning and the codification of AMK are both limited. Moreover, the DAF also reduces the potential downside effects of relying on higher levels of both types of AMK. Finally, DAF diversity, in terms of educational, functional, and tenure heterogeneity of its members, emerges as relevant to achieve effective alliance know-how collection and deployment for superior alliance performance.