Abstract
Survival in technology-intensive industries require firms to maintain alliances with different types of technological partners. However, the decision to increase partner diversity also entails risks. Based on the fact that firm performance relative to aspirations is key to understand how firms assess risky changes, this study focuses on addressing how innovation performance feedback, both positive and negative, influence a firm's decision to adjust the diversity of its alliance portfolio. Our results show that this effect is highly dependent on firms’ R&D intensity levels, as these efforts shape their ability to assess gains and costs associated with new collaborations.
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