Many multinational companies, in response to globalization, are increasingly engaging in international trade beyond their country's borders to gain and maintain competitive advantages over their competitors . This international market entry is facilitated by the collaboration of foreign companies in joint venture relationships called global strategic alliances (GSA). GSAs are created by companies to acquire new technologies, access specific markets, reduce financial risks, reduce political risks, to guarantee or obtain competitive advantages (Wheelen and Hungar, 2000 cited by Elmuti and Kathawala, 2001) . Shenkar and Luo (2008, p. 332) stated that “global strategic alliances are cross-border partnerships between two or more companies from different countries with the aim of pursuing mutual interests by sharing resources and capabilities.” always lives up to the expectations of the initiators. 60% of strategic alliances fail (Kalmbach and Roussel, 1999 cited by Elmuti and Kathawala, 2001). Certain factors have contributed to making global strategic alliances prone to failure. Parkhe (2001) listed these factors as societal cultures, national context, corporate culture, strategic directions, management practices and organization. GSAs are formed by two or more companies of different nationalities, backgrounds and cultures. These multiple inter-organizational relationships create difficulties that affect the longevity of alliances. Cultural differences such as languages, behaviors, societal norms, and corporate business ethics could be so divergent and incongruous that they could lead to the failure of GSAs. Parkhe (2001) however argued that these negative tendencies...... middle of paper ...... the achievement of one's goals and objectives have little chance of survival. Feasibility studies and research on the principles and methods of cooperation must be carried out by leaders before realizing the formation of GSAs. Coordination between management teams should be encouraged to avoid a situation where partners could still pursue their different business interests, which would fuel competition between alliance partners. Reference: 1. Elmuti, D. and Kathawala, Y., (2001), An Overview of Strategic Alliances, Management Decision, Volume 39, No. 3, pp. 205 – 217.2. Shenkar, O. and Luo, Y., (2008), International Business, 2nd edition, Thousand Oaks, CA: Sage Publications, Chap. 12, p. 331-337.3. Parkhe, A., (1991), Interfirm diversity, organizational learning and longevity in global strategic alliances, Journal of International Business Studies, Fourth Quarter, pp.. 579 – 601