Twentieth International Conference on Knowledge, Culture, and Change in Organizations

Abstract

Global markets have increased market competition worldwide. One consequence of this competitive business environment is that firms must satisfy customers who enjoy more choices. Contemporary customers demand competitive prices and better quality of goods and services. One of the most important trends is the strategic alliance, a consolidation of the manufacturer, customers, and key suppliers to achieve strategic goals such as customer-related performance—a reflection of customer satisfaction—and financial performance improvement. However, strategic alliances are not always successful since alliances with suppliers and customers require close communication to share information that offers benefits to alliance members. Since now the market evolution has been changing from standardized to the mass customized product, this study investigates whether managerial use of information technology for communication (ICT) plays a role in making strategic alliances improve both customer-related and financial performance for companies that produce those two type of products. Data were collected from 104 Indonesian manufacturing companies. Results suggest managerial use of ICT enhances engagement in strategic alliances and improves customer-related performance, and customer-related performance relates positively to financial performance.