Building on the complementarity nature of extant dyadic and portfolio level alliance research, this paper discusses the role of alliance capability and relational quality as antecedents of alliance performance. Although prior research focused extensively on the influence of dyadic issues on alliance performance, more recent studies focus on firm-level capabilities to manage sets of alliances. We specify an integrated framework that merges these two previously separated streams of research and discuss how firm-level alliance capabilities affect dyadic level relational quality. The framework suggests that relational quality mediates between both alliance capability and alliance performance and provides a detailed discussion on how firm-level mechanisms improve the quality of dyadic relationships. We also discuss implications and options for future research.

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