Abstract:   In the principalmembers strategic alliance,the members can be encouraged to give up hiding information by means of profit distribution and technology sharing.The effect of profit distribution and technology sharing on the successfulness of such an alliance is analyzed.It shows that when the principal shares technology with its members equally and distributes more profit to the more capable members,the members will expose their private information.In this way,the alliance will succeed.

Key words: “principalmembers” , strategic alliance, profit distribution, technology sharing