The purpose of this study is to investigate the relationship between the management practices and the performance of Taiwanese strategic alliances in China. Management practices include the degrees of planning, communicating, controlling and trust. Performance includes subjective satisfaction and objective profit performance. A total of 350 questionnaires were mailed and 34 effective returns were received. The methods used in the research include descriptive statistics, ANOVA analysis, correlation analysis and canonical correlation. Most of the previous related literature of business strategic alliances, scholars all focused on relationship of the types of the alliances and their performance, but did not look into the relationship between management practices and performances of the alliances. In this empirical study, we focus on the relationship of management practices and the performances in China. These empirical results summarize as follows: 1. The most important of the management practices of the alliances is the planning function of alliances (to define the common goal clearly, to set rules in detail as a decision guide, to plan a suitable organization structure of business, and to understand the partners' motives of participating the alliance. Then, the next important is the controlling function of alliances (including protecting of the business information carefully), followed by communication and mutual trust. 2. The types of the alliances have significant impact on management practices. The alliances involving capital investment are more concerned with the management practices of alliances. However, functional alliances without capital investment do not pay more attention to management practices. 3. The management practices of alliances, including the degrees of the planning, communicating, controlling and trust, have significant influences to the performances of the alliances. Furthermore, the degree of planning is most important to the subjective performance, whereas the degree of controlling is most important to the objective performance. As a result, the better the management practices, the higher the performances of the strategic alliances. 4. This study suggests that the strategic alliance is an effective method to reduce the risk of investment and enhance the competitiveness of companies. Besides, the performances of those that involved capital investment are better than those not involved. This is because that the more capital the company invests in, the higher management practice the company would focus on, that result in higher performance of alliances.
The purpose of this study is to investigate the relationship between the management practices and the performance of Taiwanese strategic alliances in China. Management practices include the degrees of planning, communicating, controlling and trust. Performance includes subjective satisfaction and objective profit performance. A total of 350 questionnaires were mailed and 34 effective returns were received. The methods used in the research include descriptive statistics, ANOVA analysis, correlation analysis and canonical correlation. Most of the previous related literature of business strategic alliances, scholars all focused on relationship of the types of the alliances and their performance, but did not look into the relationship between management practices and performances of the alliances. In this empirical study, we focus on the relationship of management practices and the performances in China. These empirical results summarize as follows: 1. The most important of the management practices of the alliances is the planning function of alliances (to define the common goal clearly, to set rules in detail as a decision guide, to plan a suitable organization structure of business, and to understand the partners' motives of participating the alliance. Then, the next important is the controlling function of alliances (including protecting of the business information carefully), followed by communication and mutual trust. 2. The types of the alliances have significant impact on management practices. The alliances involving capital investment are more concerned with the management practices of alliances. However, functional alliances without capital investment do not pay more attention to management practices. 3. The management practices of alliances, including the degrees of the planning, communicating, controlling and trust, have significant influences to the performances of the alliances. Furthermore, the degree of planning is most important to the subjective performance, whereas the degree of controlling is most important to the objective performance. As a result, the better the management practices, the higher the performances of the strategic alliances. 4. This study suggests that the strategic alliance is an effective method to reduce the risk of investment and enhance the competitiveness of companies. Besides, the performances of those that involved capital investment are better than those not involved. This is because that the more capital the company invests in, the higher management practice the company would focus on, that result in higher performance of alliances.