Competitive priorities and firm performance: A mediating effect of alliance type

This paper examines the mediating effect of alliance types on competitive priorities and firm performance in Taiwan's electronics industries, using the partial least squares (PLS) method to analyse 111 collected samples. The results show that upstream alliances influence firm performance in its ability to create new functionality and product differentiation. The results further demonstrate that horizontal or downstream alliances are best for advancing cost as a priority, upstream alliances are best for furthering delivery as a priority, and horizontal alliances are best for fostering flexibility as a priority. Furthermore, delivery priority can influence firm performance with the mediating effect of upstream alliances. All these results increase the likelihood of intercompany collaboration becoming more and more common for enterprise development. A manufacturing supply chain can be established. The world of business is a place of constant competition and cooperation.