Impact of Partner Fit and Conflict Management on Alliance Performance In Indonesian Construction Companies

Abstract

Objective: The purpose of this paper is to investigate the alliance performance of construction companies. A conceptual model is proposed where alliance performance is influenced by a two-dimensional construct composed of the partner fit and conflict management. Methodology: A questionnaire survey was administered to 311 construction companies. Analysis of Variance (ANOVA) and regression analysis as statistical tools was used to analyze the data and test the hypothesis that alliance performance is impacted by the partner fit and conflict management. Results: The hypothesis was supported by the data and analysis. The research found that partner fit and conflict management have a significant and positive impact on alliance performance of Indonesian construction companies. Implication: This research presents a conceptually yet empirically supported framework to describe the significance of alliances and network relationships in the construction industry. The study is particularly useful for practitioners by identifying advantages of suitable alliance action among executive and project managers. This paper gives valuable reference to senior manager to consider the adoption of alliance based on selection of partners and conflict management in the construction industry in Indonesia.