PARTNER SELECTION IN INTERNATIONAL STRATEGIC ALLIANCES

This paper explores a dynamic perspective on partner selection in international strategic alliances. The main argument of the paper is two fold: (1) partner selection in international strategic alliances is dependent upon resource complementarity between potential partners and competitive balance among existing or potential competitors that belong to the same industry; and (2) the importance of resource complementarity will be more pronounced in the beginning of alliance formations in the industry, whereas the concern for competitive balance will be more significant in the later stage of alliance formations. And the paper further argues that the relationship is moderated by compatibility between potential alliance partners in terms of their cultures and strategic intents.