Communication, utilization, and performance in international strategic alliances : An investigation of the post‐formation process

Purpose – The purpose of this paper is to explore post‐international strategic alliance (ISA) establishment processes by exploring the interrelationships surrounding utilization as a resource coordinating activity, two communication dimensions (four communication factors) as the antecedents of utilization, and the implications of utilization for ISA performance. Design/methodology/approach – Based on the mail and e‐mail surveys, the structural model is analyzed by using LISREL. The moderating effects of cultural sensitivity and host government interference on the relationship between utilization and international alliance performance are measured by a moderated multiple regression. The mediating effect of utilization is also examined. Findings – Three of the four communication factors (all except for informal communication) affect the effective utilization of the resources contributed by each ISA partner. Utilization contributes to the achievement of each ISA partner's objectives. Utilization is also found to fully mediate the relationships between the three significant communication factors (formal, two‐way, and participative) and ISA performance. Practical implications – The study suggests the practical and academic importance of implementing and researching the resource coordinating activities after an ISA has established to successfully manage ISA operation. Originality/value – The concept of utilization is introduced and empirically tested to investigate the post‐formation alliance process and how the process affects ISA performance.