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Open-Innovation Effectiveness: When does the Macro Design of Alliance Portfolios Matter?

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  • Rogbeer, Shalini
  • Almahendra, Rangga
  • Ambos, Björn

Abstract

We determine the impact of the macro-design of a firm's alliance portfolio on its open-innovation effectiveness. Three elements of macro-design—international, technological, and partner diversity—are theorized to affect the breadth of knowledge sourcing, which is an important facet of open-innovation effectiveness. We test our hypotheses on a sample of 982 firm-years in the biotech industry. We find a U-shaped relationship between knowledge-sourcing breadth and international diversity. We also find that that technological diversity has no impact on knowledge-sourcing breadth. Furthermore, when seeking valuable knowledge, partner diversity is detrimental to knowledge-sourcing breadth.

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  • Rogbeer, Shalini & Almahendra, Rangga & Ambos, Björn, 2014. "Open-Innovation Effectiveness: When does the Macro Design of Alliance Portfolios Matter?," Journal of International Management, Elsevier, vol. 20(4), pages 464-477.
    • Handle: RePEc:eee:intman:v:20:y:2014:i:4:p:464-477
    DOI: 10.1016/j.intman.2014.09.003
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