Digital transformation in the 21st century is significantly affecting the business environment changing the ways companies market, compete and collaborate. The digitalization trend is driving a profound transformation of business models by enabling the merging of the virtual and real worlds through the application of digital technologies, automation, robotics and artificial intelligence. Strategic alliances, thanks to advantages such as access to knowledge bases, agglomeration and synergy effects, can facilitate the process of digital business transformations. The main goal of this postgraduate thesis was to explore how the formation of strategic alliances can be used as an effective response to changed market conditions and to present them as sustainable business models in the age of digital business disruptions. The traditional motives, types and effects of joining strategic alliances are analyzed and compared with new views on the topic. The thesis explain phenomenon of digital business transformation, emphasizes importance of innovations in achieving competitive market advantage and presents guidelines for managing strategic alliances in digital era. The comparative method is used to contrast traditional theoretical framework of strategic alliances with new knowledge and reflections on the subject. By analyzing specific cases of companies that have entered into strategic alliances, it has been proposed the way of managing strategic alliance in the age of digital transformations and have been given recommendations for further research. Further questions have been suggested for future research on this topic. It is cocluded that the approach to strategic alliance theory must be multidimensional and that the analysis involves complex circumstances with respect to new technologies, business entities, regulatory requirements, consumers and the overall wider stakeholder entities. Future research should create a new set of measurement tools and evaluate alliances based on adaptability, agility, and flexibility.