The role of organisational culture in construction company alliances

Alliances between construction companies have become popular because of their importance as an alternative in global competition. Construction companies complement skills, experience, and resources with their partners to successfully complete a construction project through the formation of alliances. Alliances provide several advantages for the participants, but are subject to several risks too. The quality of inter-company relations determines how well an alliance performs. In this study, the effect of the similarity/difference between the organisational cultures of partnering companies on the quality of inter-company relations is examined through a questionnaire survey. The results of the study suggest that similarities in the organisational culture of the partners have a significant and direct impact on the quality of inter-company relations. It also has a significant and direct impact on the organisational structure of an alliance, which in turn affects inter-company relations. The findings reveal that allied companies maintain better relations when the organisational structure of the alliance is properly designed.