THE MODERATING ROLE OF ORGANIZATIONAL CULTURE CONGRUENCE ON STRATEGIC ALLIANCE FORMATION MOTIVES AND STRATEGIC ALLIANCE PERFORMANCE

The main purpose of this paper is to investigate the effect of alliance formation motives (AFM) on strategic alliance performance (SAP). An interaction effect of organizational culture on the relationship between alliance formation motives and alliance performance outcomes are proposed. Design/ methodology/ approach: The conceptual model was developed based on a survey of 324 alliance managers in GCC. The research hypotheses were empirically tested using Structural equitation modeling (SEM) technique. The major findings of the present study are summarized as follows: Organizational culture acts as a pure moderator between alliance formation motives and alliance performance outcomes and plays a prominent role on the success of strategic alliance performance outcomes. Risk sharing, technology transfer and Market & Economics Development have a significant positive relationship with strategic alliance performance outcomes. This research provides multiple insights for managers. As the analysis on the moderating role of organizational culture has highlighted the fact that it is difficult to achieve alliance success and goals without clear and adequate investigation of organizational culture, therefore, alliances managers should not ignore the vital influence of organizational culture on the strategic alliance performance, which will help in achieving a high degree of value creation, and play a crucial role in the technology transfer. The paper significantly enriches strategic alliance literature and bridges the gap in the firm alliance formation motives and strategic alliance performance by suggesting cultural effects on the relationship between alliance formation motives and alliance performance.