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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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    2. M. C. Guardo & K. R. Harrigan, 2016. "Shaping the path to inventive activity: the role of past experience in R&D alliances," The Journal of Technology Transfer, Springer, vol. 41(2), pages 250-269, April.
    3. repec:eco:journ3:2017-02-45 is not listed on IDEAS
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    7. Wadhwa, Anu & Phelps, Corey & Kotha, Suresh, 2016. "Corporate venture capital portfolios and firm innovation," Journal of Business Venturing, Elsevier, vol. 31(1), pages 95-112.
    8. repec:kap:sbusec:v:49:y:2017:i:3:d:10.1007_s11187-017-9844-z is not listed on IDEAS
    9. Piening, Erk P. & Salge, Torsten Oliver & Schäfer, Sebastian, 2016. "Innovating across boundaries: A portfolio perspective on innovation partnerships of multinational corporations," Journal of World Business, Elsevier, vol. 51(3), pages 474-485.
    10. Egbetokun A. & Oluwatope O. & Adeyeye D. & Sanni M., 2014. "The role of industry and economic context in open innovation: Evidence from Nigeria," MERIT Working Papers 073, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Martynov Aleksey, 2016. "Do Strategic Alliances, Acquisitions, and R&D Investments Act as Complements or Substitutes?," Foundations of Management, Sciendo, vol. 8(1), pages 7-20, January.
    12. repec:kap:sbusec:v:49:y:2017:i:4:d:10.1007_s11187-017-9873-7 is not listed on IDEAS
    13. repec:wsi:ijimxx:v:21:y:2017:i:03:n:s1363919617500232 is not listed on IDEAS
    14. Garcia Martinez, Marian & Zouaghi, Ferdaous & Sanchez Garcia, Mercedes, 2017. "Capturing value from alliance portfolio diversity: The mediating role of R&D human capital in high and low tech industries," Technovation, Elsevier, vol. 59(C), pages 55-67.
    15. repec:wsi:ijimxx:v:21:y:2017:i:01:n:s1363919617500013 is not listed on IDEAS

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