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Extant research on strategic alliances has relied mainly on case and survey methodologies to examine strategic, structural and operational issues in alliance relationships. Demonstrates that experimental methodology can usefully be employed to examine important strategic and behavioural issues in ongoing alliances. Reports on an experiment involving role‐playing among 221 managers which was conducted to investigate determinants of satisfaction and continuity in a hypothetical marketing alliance. Indicates that alliance satisfaction and continuity are influenced positively by a partner′s commitment,competence and strategic compatibility. Finds commitment to be the strongest determinant of both satisfaction and continuity. Discusses implications of the findings and methodology employed and suggests future research directions.

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