Although the direct impact of trust on alliance performance is well documented, little is known about how trust
affects alliance performance. Based on the resource-based view, this study develops a model that employs
resource sharing as a critical mediating mechanism through which trust affects alliance performance. Using
survey data from 205 Chinese firms that were engaged in alliances, we find broad support for the mediated
effects of trust. Interestingly, we also find that goodwill trust matters more to tangible than to intangible
resource sharing, whereas competence trust matters more to intangible than to tangible resource sharing.
Overall, our research provides important implications for firms seeking to translate their trust into superior
alliance performance.