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An area that so far has been neglected within organizational theory research is the examination of the relationship of characteristics of the environment, formalized planning, and organizational structure, along with their resultant effects on firm performance. This paper examines these relationships based on three environmental dimensions, four design dimensions, and two dimensions of formalized planning used by decision makers within an organization. The results of an empirical investigation suggest that environmental characteristics and organizational design do have an impact on both performance efficiency and performance effectiveness. In addition, interactions of environmental characteristics and organizational design on performance effectiveness were significant.

Although the importance of trust in creating and maintaining interorganizational relationships has been acknowledged, little research has focused on the processes leading to the development of trust in international strategic alliances. This article addresses this shortcoming and reports the results of field research on the evolution of AMRAD Pharmaceuticals, a strategic alliance between U.S. and Australian biomedical firms. Based on this case study, a process model of trust is developed which describes how trust can be created and expanded between strategic alliance partners, and its implications for alliance performance. Propositions are developed to motivate and guide future empirical investigation.