DOMESTIC VERSUS CROSS-BORDER ALLIANCES: AN EXPLORATORY STUDY OF RELATIONSHIP DIFFERENCES

International alliances predominate the literature (Terpstra and Simonin 1993), even though almost one-half of strategic alliances formed by U.S. firms in the late 1980s involved domestic partners (Culpan and Kostelac 1993). This study compares domestic and cross-border alliances in two areas: the structural framework (linkage, form, mode, coverage, and motive) and performance (perceived effectiveness) of the relationship. The findings indicate that though significant differences exist in the structural framework of domestic and cross-border alliances, these differences do not precipitate divergent levels of relationship effectiveness. Alliances, regardless of partner origin, appear effective at meeting the expectations created by such a cooperative venture.