As the pace of global business accelerates, and customers continually become more demanding and sophisticated, companies are finding the competitive landscape dramatically changing. Markets are moving so quickly that is very difficult for one company to stay current on all technologies, resources, competencies, and information needed to attack, and be successful in those markets. Strategic alliances offer a means for companies to access new markets, expand geographic reach, obtain cutting-edge technology, and complement skills and core competencies relatively fast. Strategic alliances have become a key source of competitive advantage for firms and have allowed them to cope with increasing organizational and technological complexities that have emerged in the global market. Strategic alliances are long-term collaborative arrangements between two or more firms to execute specific transactions for mutual gain and to maximize performance through cost reduction, knowledge acquisition, and/or market expansion. They vary by location (domestic vs. cross-border), investment (equity vs. non-equity), rivalry (competitive vs. noncompetitive), function (marketing vs. production), and/or hierarchical control (independent vs. dependent). They have become increasingly important as vehicles for cost reduction, learning, market entry, innovation and growth.