Communication among business partners
Communication is key to successful alliances
Communication plays an important role both during the formation of the alliance as well as in maintaining the relationship during the alliance. Alliance partners must have a clear understanding of the other party’s goals and objectives and operational matters such as technical data, trouble spots and changing situations and this requires clear and open communication.
Indeed, the benefits of collaboration cannot be achieved without effective communication (Cummings 1984). Communication processes underlie most aspects of organisational functioning and communication behaviour is therefore critical to organisational success (Snyder and Morris 1984). Communication allows the partners to understand alliance goals, and their respective roles and responsibilities and helps with the sharing and dissemination of individual experiences (Inkpen 1996). Larson (1991) further maintains that cooperation requires ongoing negotiation and learning which cannot take place without adequate communication capabilities on the part of the partners. According to Larson, successful collaboration requires "profit-oriented action" to be pushed into the background in relation to "communication-oriented action." In addition, the systematic availability of information allows people to complete tasks more effectively and promotes increased levels of satisfaction (Spekman and Mohr 1994).
Spekman and Mohr (1994) identify three aspect of communication behaviour:
- Communication quality
- Extent of information sharing between partners;
- Participation in planning and goal setting
Communication quality is a key factor of success in partnerships. Timely, accurate and relevant information is essential if the goals of the partnership are to be achieved, whilst the continued growth of close ties between trading partners requires honest and open lines of communication at all times (MacNeil 1981).
Information sharing refers to the extent to which critical, proprietary information is communicated to the other party. According to Huber and Draft (1987) high performing partners, enjoying closer ties, exhibit more relevant and more frequent information exchanges. Devlin and Bleackley (1988) similarly argue that the availability and sharing of information is an important predictor of partnership success.
Participation refers to the extent to which partners engage jointly in planning and goal setting. Andersen et. al. (1987) suggest that participation in decisions and goal formulation is a key factor contributing to partnership success. Participation in specifying roles, responsibilities and expectations is particularly important when one partner's actions influence the ability of the other to compete (Spekman and Mohr 1994).
