Abstract
In this study, we suggest a new perspective on the linkage between alliance portfolio diversity and innovation performance based on a contingency approach. Using a longitudinal data set on alliance portfolios and patents of 182 firms in the U.S. manufacturing industries, we examined that alliance portfolio diversity has a U-shaped relationship with firm-level innovation. Internal value creation capabilities in terms of routine and ability are found to moderate the relationship between alliance portfolio diversity and innovation performance: organizational search routine strengthens the relationship of alliance portfolio diversity and innovation performance while technological capabilities weaken and flip the relationship.
Highlights
Collaborations between firms are regarded as one of the key elements for driving their innovation
In this study, we suggest a new perspective on the linkage between alliance portfolio diversity and innovation performance based on a contingency approach
These results show that the alliance portfolio diversity alone cannot explain the relationship with innovation performance, and that this relationship is determined by internal contexts such as organizational search routine or technological capabilities
Summary
Collaborations between firms are regarded as one of the key elements for driving their innovation. On their own resources, most firms are not sufficiently able to address the changes in their environment. Collaborations allow access to new ideas and resources, encourage new ways of combining of existing resources, and increase the participants’ innovation capabilities (Gupta et al 2007). Collaboration with diverse parties allows firms to create value in different ways: Collaborations with suppliers contribute to increasing input quality and realizing process innovation and cost reduction (Sobrero and Roberts 2002). Alliances allow firms to flexibly cooperate with external parties and gain access to their resources without incurring the high costs and complexities associated with other collaboration modes such as M&As or joint ventures
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