Abstract: Abstract: Alliance relationship in a strategic alliance is the important factor affecting the growth of innovation performance. From the perspective of inter-firms relationship in a strategic alliance, the hypothesis is tested by using survey data of 127 German alliance firms. Results indicate that inter-denpendence in alliance has an inversed U-shape effect on innovation performance; the confliction in the alliance has a negative effect on innovation performance; the interaction between inter-denpendence and confliction in the alliance negatively affects innovation performance; the environmental dynamics has a negative moderating effect on the relationship between inter-denpendence in alliance and innovation performance; environmental dynamics has a positive moderating effect on the relationship between confliction in alliance and innovation performance. A very important managerial implication for solving the stability of alliance relationship between the member firms, acquireing key resources, and adopoting innovation activities effectively is provided in order to win the performance growth.

Key words: alliance inter-dependence, alliance confliction, environmental dynamics, innovation performance