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A collaboration alliances, involves two or more parties, domestic or international alliances, working together to achieve mutual strategic advantage but fall short of a merger or acquisition. Firms are forced to collaborate, due to environmental uncertainty, intense global competition, rapid technological advancement and ever demanding customer (Horton, 1998). Further argument is that, strategic alliances are used mainly to share costs and risks and to penetrate new market (Peng and Wong, 1994). According to Porter, the most common reasons for firms to collaborate are to acquire new technology, to overcome technical and manufacturing know-how deficiency, to obtain new competencies, to gain overall economies of scale and to increase market share and penetration (Porter, 1990). Collaboration or alliances involves many types of arrangements like joint ventures, consortia, network, opportunistic alliances, franchising, licensing, subcontract, co-production and so on (Johnson and......

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