Proceedings of 8th Asian Business Research Conference 1 - 2 April 2013, Bangkok, Thailand, ISBN: 978-1-922069-20-7 How Environment Uncertainty Affects Partner Selection: The Mediating Role of Cost and Strategy Motivations Wei-Long Lee1 This paper investigate the degree to which environment uncertainty affects inter-organisational alliance partner selection in SMEs and blends the Resource-Based View (RBV) in a multiple-mediator model in which different dimensions of alliance motivation (cost and strategy) act as mediating mechanisms that transmit the positive effects of environment uncertainty to partner selection criteria. Four hypotheses are developed and then tested on a survey data sample of 108 firms in the Taiwanese steel industry. Our research findings show the mediating effects of alliance motivation cost and strategy and understanding how environment uncertainty impacts alliance motivation (cost and strategy) within SMEs. Keywords: Environment Uncertainty, RBV, Alliance Motivation (cost and strategy), Partner Selection, SMEs 1 Dr.Wei-Long Lee, Associate Professor, Department and Graduate Institute of International Business, National Kaohsiung University of Applied Sciences, Taiwan, ROC, Email: w.lee@kuas.edu.tw 1