The Contingent Value of Resource Complementarity for Alliance Performance: Evidence From Chinese Manufacturing Firms

Abstract

Despite its critical role in ex ante alliance formation decisions, the impact of resource complementarity on alliance ex post performance, particularly in emerging economies, remains underexplored. Informed by the resource-based view (RBV), this study extends this line of research by examining when resource complementarity matters to alliance performance in an emerging economy. Specifically, drawing on transaction cost economics (TCE) and the institutional view, we examine how a partner-specific transactional attribute (behavioral uncertainty) and the institutional environment (featuring subnational institutional development and government support) condition the value of resource complementarity. Using a sample of manufacturing firms in China, we find that the positive effect of resource complementarity on alliance performance is reduced when partners’ behavioral uncertainty increases transaction costs. The positive effect becomes stronger when relevant subnational institutions have a high index of marketization. Moreover, the effect of resource complementarity on alliance performance is shown to be strongest with moderate government support. Overall, this study provides novel insights into how firms can benefit from utilizing resource complementarity, highlighting the importance of incorporating TCE, and the institutional view in analyzing alliance-related resource issues when considered along with the RBV.