Abstract
This paper focusses on two streams of research that delivered mixed results on the role of two key phenomena: alliance portfolio diversity (APD) – diversity in the total set of the direct alliance partners types a focal firm maintains – and resource constraints. We argue that there is an inverted U-shape relationship between APD and innovative performance. Based on the literature on resource constraints, we hypothesize and find a positive influence of resource constraints on innovative performance and on the relationship between APD and innovative performance. Contributing to the field of resource constraints and specifically to the idea that resource constraints can have different effects under different circumstances, we furthermore argue and find that that the positive moderating effect differs for the relationships between APD and two dimensions of innovative performance, incremental and radical. We test our hypotheses on a panel dataset of 10,334 firms, from five consecutive Community Innovation Surveys.
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