The impact of firm's Internet utilization on the operation and performance of its strategic alliance has recently been an important issue for practical and academic fields. This paper, by using LISREL model, empirically investigated 110 Taiwanese firms with experience of strategic alliance to explore the role of Internet utilization played on the performance of strategic alliance. Empirical results indicate that firm's Internet utilization has significantly positive influence on communication and technology transfer between partners. Being affected by communication between firm and its partner, trust toward partner also positively influences firm’s technology transfer and its alliance performance.