2.1 during the selection process. Geringer (1991) asserted

2.1 Strategic alliance

A strategic alliance is an agreement between two or more parties to
pursue a set of agreed-upon objectives needed while remaining independent
organizations. In recent years, international strategic alliances continue to dramatic
growth in popularity and the both side of firms take an advantage from an alliance.

It is a difficult and critical decision for multinational corporations
when they decide to enter new strategic alliance (Geringer, 1991; Ireland,
Hitt, & Vaidyanath, 2002). In creating new alliance, the companies will
find partners who can fill certain skill and who can add their complement of
ability. Dacin et al. (1997) mentioned complementation is the one of important
factors to choose alliance partner.

Nowaday global competition lays the foundation for company to develop
strategic alliances at both international and national level.  The choice of the right partner is one of the
most important factors in the successful alliance (Kauser & Shaw, 2004a).

According to Mendelson&Polonsky (1995) and Elmuti&Kathawala (2001), major
step in creating successful alliance is partner selection. Spekman (1998) finds
that process of good partner selection strongly depends on mutual goal between

In first, Gulati (1995) finds that prior alliances establish ties that
directly and indirectly affect on a choice the new alliance partners. Gulati
and Gargiulo (1999) argue that partners of new alliance raise with their prior
ties, interdependence, common third parties and centrality in alliance network.

Also, they focused on intra-industry alliances. According to Li and Rowley
(2002), different evaluation criteria for alliance and inertia plays an
important role during the selection process.

Geringer (1991) asserted that affininties in organizational culture and former
alliance experience with firms could affect alliance performance. According to
Harrigan (1988), the longevity and stability of an alliance would have positive
effects on performance. Lewin and Kozin (2000) mentioned that one of reasons
for the failed alliance is lack of misknow the each role of strategic alliance
and mutual connection between the firms of alliances.

2.2 Partner
selection criteria

            in 1951, Brendel tried to
frame of selection criteria for choosing channel members. He made 20 key
questions for industrial companies to ask their prospective channel members in
his survey. 


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