“…Heterogeneous institutional developments and environments in international alliances may imply huge knowledge gaps between foreign and local partners (Li & Scullion, 2006). Due to the beneficial diversity of practices, beliefs and values residing in and around alliance partners (Sarala & Vaara, 2010), institutional distance could be one of the potential sources of cross-border knowledge transfer. Notwithstanding, our findings indicate that institutional distance is essentially a key impediment of international knowledge acquisition because on the one hand, it raises the perceived opportunistic behaviors of the partner and on the other hand, it results in difficulties, puzzles, and causal ambiguities associated with knowledge transfer and learning, reflecting the limited access to knowledge.…”