A Model of Cultural Differences and International Alliance Performance

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