Major studies on strategic alliances have until now concentrated on large firms, thus opportunities and problems related to the formation and operation of alliances by small- and medium-sized firms remain unexplored. This study concentrates on product and skills development
in high-tech small- and medium-sized firms (SMHT) through international strategic alliances. Due to the explorative nature of the study, a qualitative method has been used for data collection and analysis. A theoretical framework consisting of motives, resources, learning, network, and performance has been applied to analyse case studies. Learning, complementarity of resources, and development of long-term relationships are found to be closely related with performance. Another finding is that environmental issues often have significant impact on the development of alliances.