The pursuit of outcomes is the raison d'être for strategic alliances, yet the literature is on outcomes rather fragmented. Moreover, conceptual and empirical confusion exists between strategic alliance outcomes and how the alliance is working. Important behavioral terms, such as conflict and tension, are also used without conceptual clarity. We tackle these issues by laying out a consolidated spectrum of strategic alliance outcomes and explaining how outcomes are often intertwined. We distill how well the alliance is working into three indicators of functioning and highlight their conceptual distinctiveness vis-à-vis outcomes. We disentangle definitions and implications for three important behavioral issues in alliances—tradeoffs, frictions, and tensions—and discuss how they are rooted in partner interdependence. Lastly, we offer an ‘outcome-centric’ perspective of strategic alliances, which shifts the emphasis from outcomes as an end result to pursuit of outcomes as an explanatory starting point. This perspective opens up interesting opportunities to theorize about functioning; behavioral manifestations of interdependence; and the pursuit of multiple outcomes in strategic alliances. Overall, our paper offers contributions in terms of conceptual clarity, a behavioral view of partner interdependence in strategic alliances, and an outcome-centric perspective resulting in novel opportunities for theorizing about strategic alliances.