Selecting partners for successful international alliances: Examination of U.S. and Korean firms

Abstract

Managers have found strategic alliances to be useful in entering international markets. Nonetheless, recent history suggests that international strategic alliances have a high likelihood of failure. To decrease this probability, managers must prepare their firm to collaborate. This requires understanding their partners' objectives as well as the criteria used by their partners in selecting collaborators. We examine partner selection criteria employed by managers from U.S. and Korean firms. We find significant differences and similarities in the characteristics sought for alliance partners between U.S. and Korean managers. Understanding these criteria prior to alliance formation can increase the likelihood of alliance success.