This study proposes that when partners develop cooperative relationships with each other, rather than competitive or independent ones, they are open with their ideas and resources as they believe that they both will use this exchange for mutual benefit. The structural equation analysis of findings from 95 outsourcing partnerships in China supported the reasoning that cooperative goals foster open discussion of effective practices that in turn results in business development. Results were interpreted as providing support that cooperative interdependence is a foundation for effective interaction and learning between outsourcing partners in China and perhaps in other countries as well