SELECTING PARTNERS FOR SUCCESSFUL INTERNATIONAL ALLIANCES - EXAMINATION OF US AND KOREAN FIRMS

Managers have found strategic alliances to be useful in entering inter national markets. Nonetheless, recent history suggests that internatio nal strategic alliances have a high likelihood of failure. To decrease this probability managers must prepare their firm to collaborate. Thi s requires understanding their partners' objectives as well as the cri teria used by their partners in selecting collaborators. We examine pa rtner selection criteria employed by managers from U.S. and Korean fir ms. We find significant differences and similarities in the characteri stics sought for alliance partners between U.S. and Korean managers. U nderstanding these criteria prior to alliance formation can increase t he likelihood of alliance success.