Consequently, IJVs are frequently plagued with high degrees of instability and poor performance (Parkhe, 1993; Kogut, 1989). More often than not synergistic gains and positive spillover effects in terms of knowledge creation and learning for the parents never materialize. But why do these joint ventures fail? More importantly, is it possible to promote higher alliance performance through a better match between strategic motives? This article addresses these questions by identifying a set of strategic motives for interna- tional joint venture formation from a knowledge perspective and examining the implica- tions for outcome according to the exploitation/exploration dichotomy (March, 1991). The purpose is to shed light on mismatches between underlying strategic motives for alli- ance formation and desired outcomes in order to advance the understanding of why IJVs fail.