A model of cultural differences and international alliance performance
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A model of cultural differences and international alliance performance David G Sirmon1 and Peter J Lane2 1
Management Department, Clemson University, Clemson, SC, USA; 2Management Department, University of New Hampshire, Durham, NH, USA Correspondence: DG Sirmon, Management Department, Clemson University, Sirrine Hall, Clemson, SC 29634-1305, USA. Tel: þ 1 864 656 6773 Fax: þ 1 864 656 2015 E-mail: [email protected]
Abstract We propose a model of cultural differences and international alliance performance to explain the ambiguous findings regarding the influence of national culture differences on alliance performance. Building on research on national, organizational, and professional cultures, we argue that the closer the domain of a social group is to the value-creating activities of an alliance, the more disruptive cultural differences between the partners’ members of that social group will be. Organizational culture differences will tend to be more disruptive than national culture differences, and differences in the professional culture most relevant to alliance value creation typically will be the most disruptive. Implications for research and managerial practice are discussed, and the model’s relevance for international R&D alliances is highlighted. Journal of International Business Studies (2004) 35, 306–319. doi:10.1057/palgrave.jibs.8400089 Keywords: cultural differences; alliance performance; professional culture
Received: 2 June 2003 Revised: 3 August 2003 Accepted: 3 August 2003 Online publication date: 1 July 2004
International alliances offer firms opportunities to draw upon knowledge and capabilities not currently controlled or available within their home country (OECD, 2000). Among other benefits, this can help firms share costs, enter new markets (Glaister and Buckley, 1996), supplement their capabilities (Inkpen and Dinur, 1998; Hitt et al., 2000; Lane et al., 2001), seek more radical innovations by integrating knowledge from different areas of science and technology (Lubatkin et al., 2001; Nummela, 2003), and create common platforms for products and services (Mowery et al., 1998; Caloghirou et al., 2003). However, international alliances also bring challenges not found within domestic alliances. Research has shown that differences in national culture can disrupt collaboration and learning between alliance partners (Lane and Beamish, 1990; Parkhe, 1991; Lyles and Salk, 1996; Hennart and Zeng, 2002). However, the conclusion that national culture differences alone disrupt knowledge sharing between partners recently has been questioned. Pothukuchi et al. (2002) suggested that the importance accorded to national culture differences on international alliance performance may be overstated because most studies have failed to consider or specify the influence of organizational culture differences as well. Whereas national culture relates primarily to deep-seated values, organizational culture relates primarily to shared b
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