OSITG03The changing competitive dynamics in the online environment has resulted in an increased pressure for organizations to gain IT resources and capabilities much ahead of their rivals. This has resulted in a surge in strategic IT alliances and online partnerships among organizations engaged in E-commerce. Combining resource based view of firm and contingency perspectives, we offer a framework to understand (i) why firms form strategic IT alliances, and (ii) what influences the nature of their alliance mode. Drawing upon several studies from strategic management and organization theory, we argue that resource discrepancies in terms of knowledge and property resources, and environmental uncertainties posed by business and technological environments largely influence a firm's decision to form an alliance as well as its choice on the mode of the alliance.