Does power sharing matter? The role of power and influence in alliance performance

Although several scholars have emphasized that a balance in power and control between partners enhances alliance stability, the extant studies have not explicitly addressed the performance implications of relational influence between partners. Drawing on social exchange theory, we examined the effect of mutual influence between partners on perceived alliance performance. An empirical examination of data collected from the alliance managers of 179 strategic alliances revealed that mutual influence between partners is positively related to perceived alliance performance. We also found that the relationship between mutual influence and perceived alliance performance is relatively more salient in international alliances than in domestic alliances.