Impact of multilevel strategic alliances on innovation and firm performance

Abstract

PurposeThe purpose of this study is to explore the configuration of network ties that would have a positive impact on performance outcomes and test the presumed impact of multilevel strategic alliances on innovation and firm performance in a specific industry.Design/methodology/approachThis study comprises part of a larger project on the network relations of yacht-building firms operating in Turkey. Data of the study was collected through face-to-face interviews and questionnaires with 143 yacht-building firms operating in major yacht-building regions of the country.FindingsThe findings of the study indicated the presence of meaningful relationship between total number of (strong) network relations perceived as strategic alliance and overall innovation performance. The generally presumed positive relationship between innovation performance and firm performance was supported. The type of innovation performance that was found to be related to the total number of network ties perceived as strategic alliance at national and global levels was product innovation performance.Practical implicationsA possible contribution of this study for industry members would be the implications of the finding that indicates positive impact of strategic alliances with different actors of the industry.Originality/valueThis study contributes to the exploration of network configurations that have a positive impact on innovation and firm performance, by dealing with the impact of the size, strength and geographical level of network relations in one single study. The yacht-building industry as the empirical setting represents a specific category of industry that rests on customized individual or small-batch manufacturing requiring considerable interaction with customers and suppliers. Because no study exists on this topic, findings can inspire similar industries.