Abstract:Previous evidence has shown that the high failure rate of strategic alliances is largely determined by the multiple cooperation risks. This study attempts to explore the determinants of relational risks and performance risks in strategic alliances, including an external factor (i.e., environmental uncertainty), a cultural factor (i.e., cultural distance) and an inter-organizational factor (i.e., shared vision). We examine these hypotheses using 205 paired partnering firms in China, which generate 410 valid questionnaires. Results from these data do not support the inverted-U shaped relationship between environmental uncertainty and relational risk. Predictions such as a positive relationship between environmental uncertainty and performance risk, a positive effect between cultural distance and relational risk, a U-shaped relationship between cultural distance and performance risk, and a negative relationship between shared vision and both relational risk and performance risk are supported. Implications for theory and practice are discussed.