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Returns to alliance portfolio diversity: The relative effects of partner diversity on firm's innovative performance and productivity

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  • de Leeuw, Tim
  • Lokshin, Boris
  • Duysters, Geert

Abstract

This study considers the impact of diversification in types of technological alliances, resulting in alliance portfolio diversity, on various dimensions of a firm's performance, as they relate to exploration and exploitation. Using a large panel of innovative firms in the Netherlands, this study shows that partner type diversity in a firm's alliance portfolio has an inverted U-shaped relationship with productivity and radical innovative performance and a positive relationship with incremental innovative performance. Moreover, the results suggest that a lower level of diversity is needed to achieve an optimal level of productivity compared to radical innovative performance, whereas for incremental innovative performance a higher level of portfolio diversity appears to give the best performance.

Suggested Citation

  • de Leeuw, Tim & Lokshin, Boris & Duysters, Geert, 2014. "Returns to alliance portfolio diversity: The relative effects of partner diversity on firm's innovative performance and productivity," Journal of Business Research, Elsevier, vol. 67(9), pages 1839-1849.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:9:p:1839-1849
    DOI: 10.1016/j.jbusres.2013.12.005
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