Abstract
This paper explores the drivers of firms to enter into technological alliances by testing the relative effects of social networks and absorptive capacity on partner selection, governance and alliance performance. The results show within the sample of Korean high-tech SMEs that absorptive capacity is the primary driver of partner selection and alliance performance than social networks. However, neither absorptive capacity nor social networks were found to significantly affect the choice of technological alliance governance mode. Based on these findings, this study posits the driver of technological alliance formation among Korean SMEs is absorptive capacity. Discussion of these conclusions and implications for academics and business practitioners are discussed in the closing section of the paper.
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