The impact of partner similarity on alliance management capability, stability and performance

Abstract

PurposeThe purpose of this paper is to investigate significant impact of partner similarity on the success of horizontal alliances in logistics service providers (LSPs) from China.Design/methodology/approachPrimary data were collected via questionnaire distribution to 380 Chief Executive Officers and Managing Directors in 262 small and medium logistics enterprises in China. There are 316 valid questionnaires for further analysis with 83 percent accuracy in response rate. Structural equation modeling was used to test the impact of partner similarity on alliance management capability, stability and performance.FindingsPartner similarity and logistics alliance management capability (LAMC) are positively correlated to alliance stability and performance in horizontal alliances among Chinese LSPs, especially competence similarity and cultural similarity. Moreover, alliance stability mediates the impact of partner similarity and LAMC on alliance performance.Research limitations/implicationsThe basic limitation of this research is to collect data just from small and medium logistics enterprises that operate in China with sample size (n=316). This research could further be extended to other regions in China or other countries.Practical implicationsThis research verifies the positive relationship between partner fit and management capability. Besides, based on research findings, the research proposes guidelines for LSPs pursuing horizontal alliancesOriginality/valueThis research proposes an experimental model for Chinese LSPs to cooperate successfully and build horizontal alliances in order to increase their effective customer response capability.