This study aims to explore factors affecting the formation and operation of strategic alliances, and the impact of these factors on performance. The underlying premise being that different cultures affect strategic alliances differently. The study is based on the analysis of 20 alliances between firms in Eastern and Central Europe and their Swedish partners. Significant differences were found across countries. The paper concludes with implications for managers responsible for managing international alliances in terms of effectiveness of their role, as well as their cultural awareness and ability to deal with cultural differences.