Performance impact of behavioural factors in alliances by SMEs: an empirical analysis

Purpose This paper aims to fill a gap in the authors’ understanding of alliance-level and the partner-level alliance performance by analysing the influence of behavioural factors for alliances formed by SMEs. Prior studies on the topic have arrived at inconclusive results. This study plugs gaps in prior studies' approach such as deployment of inconsistent performance measures, and omission of contingent factors. Design/methodology/approach The survey method was used to collect responses about 86 alliances of Indian SMEs. The data were analysed using PLS-SEM technique. Findings Two relationship capital variables – Trust and Commitment – were found to have differential influence on the two levels of SME alliance performance, and their influence was mediated by the presence of two exchange climate variables – Communication and Conflict. Research limitations/implications Since the study employs perceptual measures of performance, it is subject to the limitations of these measures. Similarly, given the relatively small sample size on which analyses were based, the results may need to be replicated in order to generalize the findings. Practical implications The study tested a comprehensive model for alliance and partner performance in the context of SMEs. The study's results may be particularly useful to managers of SMEs for focusing on the key factors that influence alliance performance as well as their performance. Originality/value The model tested in the study is comprehensive and also accounts for the subtleties about the impact of the two key types of behavioural factors – Relationship capital and Exchange climate – on alliance and partner performance.