Abstract:Effective alliance control is critical to realize the potential of strategic alliance. Based on social exchange and institution theory, the study suggests personal relation and institutionalization are two critical determinants of control mechanisms in alliance. Especially, the impact of these two determinants is contingent on the developing stage of cooperation. With a survey about 365 inter-Chinese-finn alliances, we test the hypotheses. The theoretical and practical implication is discussed at the end of the paper