Strategic　alliance　is　an　important　source　for　enterprises　to　achieve　competitive　advantages,　especially　for　small　and　medium-sized　enterprises　(SMEs).　Based　on　Transaction　Cost　Economics　(TCE)　and　Theory　of　Relational　Contract　(TRC),　this　paper　focuses　on　the　issue　of　how　to　choose　appropriate　alliance　governance　mode.　First,　the　authors　analyze　factors　that　influence　choice　of　alliance　mode,　and　compare　the　contribution　of　TCE　and　TRC　by　viewing　them　as　complementary　factors.　Second,　the　authors　propose　several　hypotheses　basing　on　the　above　theoretical　analysis　of　alliances　governance.　Furthermore,　by　using　samples　of　small-and-medium-sized　enterprises　(SMEs)　in　North　China,　the　authors　empirically　test　the　theoretical　hypotheses　and　find　some　important　factors　that　influence　alliance　govemance　decision-making,　such　as　the　complexity　of　alliance　and　prior　relationship　between　partners.　Finally,　the　authors　give　some　discussions　(in　the　empirical　results　and　propose　some　suggestion　for　future　research.