Birmingham Insights on Asia – (4) International Strategic Alliance Performance (High Technology Industry in Taiwan)

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This comment is based on Jo-Chun Chieh’s Dissertation written under the supervision of Prof. Michael Czinkota at the University of Birmingham, UK.

3, Organizational culture differences have more influence than national culture differences on International Strategic Alliance (ISA) performance, from the Taiwanese managers’ perspective. Two of the organizational cultural dimensions, professional and pragmatic orientation, ranked as the first two elements of importance when cooperating with a foreign partner, while two of the national cultural dimensions, uncertainty avoidance, long-term orientation, was ranked subsequently. Pothukuchi et al. (2002) addressed a similar concept with differences in organizational culture, compared to differences in national culture, considerably facilitating conflict and impeding cooperation between alliance partners.

4, The study justifies  that ISA practice indeed significantly interferes with the relationship between culture differences and iSA performance. John (1984) indicates that long and sticky partnership between cooperative enterprises reduces that potential for opportunistic behavior while the dissolution of a partnership often leads to poor decision-marketing, interaction and management of inter-organizational relationships. Complementary resources, absorptive capacity, commitment, and trust are important willingness to work together (Day & Klein, 1987). This partnership can evolve positive or negative consequences, depending on how Taiwanese managers implement their managerial practices with foreign partners.

 

Related Article: Birmingham Insights on Asia – (3) International Strategic Alliance Performance (High Technology Industry in Taiwan)