The determinants of strategic alliance performance have not been explored adequately in the literature. Empirical studies abound with numerous kinds of performance measures but, thus far, there is no coherent theoretical basis for the determinants of alliance performance. In this article we present a theoretical framework for understanding alliance performance in terms of its key antecedents. We submit that alliance performance is strongly influenced by particular characteristics of the partner firms as mediated by alliance conditions. We use the term "partner analysis" to denote the integrated approach comprising market analysis and resource analysis of partner firms. Alliance conditions are composed of collective strengths, interpartner conflicts, and interdependencies. We discuss the various linkages between the components of partner analysis, alliance conditions, and alliance performance. Finally, we develop a number of propositions to facilitate empirical testing of our partner analysis framework, and indicate its key implications for future research and managerial practice.
