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Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities

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  • Haeussler, Carolin
  • Patzelt, Holger
  • Zahra, Shaker A.

Abstract

High technology new firms have extensively used strategic alliances to gain access to knowledge, resources and capabilities. However, given their inexperience and limited resources, these firms are vulnerable to their more established partners' potential opportunism. This raises the question: How can new firms maximize the benefits of these alliances while reducing their risks? In this study, we address this question by drawing upon the capabilities perspective to propose that the impact of upstream, horizontal, and downstream alliances on product development depends on the degree of specialization of new firms' technological capabilities. Using a database of biotechnology firms, the results support this argument even when different types of strategic alliances are considered.

Suggested Citation

  • Haeussler, Carolin & Patzelt, Holger & Zahra, Shaker A., 2012. "Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities," Journal of Business Venturing, Elsevier, vol. 27(2), pages 217-233.
  • Handle: RePEc:eee:jbvent:v:27:y:2012:i:2:p:217-233
    DOI: 10.1016/j.jbusvent.2010.10.002
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    2. Sánchez de Pablo González del Campo, Jesús David & Peña García Pardo, Isidro & Hernández Perlines, Felipe, 2014. "Influence factors of trust building in cooperation agreements," Journal of Business Research, Elsevier, vol. 67(5), pages 710-714.
    3. Andrew A. Toole & Dirk Czarnitzki & Christian Rammer, 2015. "University research alliances, absorptive capacity, and the contribution of startups to employment growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(5), pages 532-549, July.
    4. Khavandkar, Ehsan & Theodorakopoulos, Nicholas & Hart, Mark & Preston, Jude, 2015. "Leading the Diffusion of Intellectual Capital Management Practices in Science Parks," MPRA Paper 82115, University Library of Munich, Germany, revised 17 Nov 2016.
    5. Xue, Jinjie & Yuan, Hongping & Shi, Benshan, 2016. "Investigating partners' opportunistic behavior in joint ventures in China: The role of transaction costs and relational exchanges," Journal of Business Research, Elsevier, vol. 69(12), pages 6067-6078.
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    7. Mohammad Saleh Farazi & Ana Pérez-Luño & Shanthi Gopalakrishnan, 2016. "How Can Knowledge Structuration Serve Strategic Goals? A Theory For Technology Firms," Working Papers 16.01, Universidad Pablo de Olavide, Department of Business Organization and Marketing (former Department of Business Administration), revised Jun 2016.
    8. Koski, Heli, 2015. "Commercial success of innovation: the roles of R&D cooperation and firm age," ETLA Working Papers 30, The Research Institute of the Finnish Economy.
    9. Yannis D. Caloghirou & Aimilia Protogerou & Aggelos Tsakanikas, 2014. "Exploring knowledge-intensive entrepreneurship in high-tech and low-tech manufacturing sectors: differences and similarities," Chapters,in: Knowledge-Intensive Entrepreneurship in Low-Tech Industries, chapter 2, pages 17-41 Edward Elgar Publishing.
    10. Aimilia Protogerou & Yannis D. Caloghirou & Glykeria Karagouni, 2014. "The relevance of the 'dynamic capabilities' perspective in low-tech sectors," Chapters,in: Knowledge-Intensive Entrepreneurship in Low-Tech Industries, chapter 7, pages 138-165 Edward Elgar Publishing.
    11. Hagedoorn, John & Lokshin, Boris & Malo, Stéphane, 2016. "Alliances and the innovation performance of corporate and public research spin-off firms," Research Memorandum 041, Maastricht University, Graduate School of Business and Economics (GSBE).
    12. Kwangsoo Shin & Sang Ji Kim & Gunno Park, 2016. "How does the partner type in R&D alliances impact technological innovation performance? A study on the Korean biotechnology industry," Asia Pacific Journal of Management, Springer, vol. 33(1), pages 141-164, March.
    13. Rodolfo Petter & Luis Resende & Pedro Andrade Júnior & Diogo Horst, 2014. "Systematic review: an analysis model for measuring the coopetitive performance in horizontal cooperation networks mapping the critical success factors and their variables," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 157-178, August.
    14. Carolin Haeussler & Matthew J. Higgins, 2012. "Explaining Preferences for Control Rights in Strategic Alliances: A Property Rights and Capabilities Perspective Approach," NBER Working Papers 18364, National Bureau of Economic Research, Inc.
    15. Soh, Pek-Hooi & Subramanian, Annapoornima M., 2014. "When do firms benefit from university–industry R&D collaborations? The implications of firm R&D focus on scientific research and technological recombination," Journal of Business Venturing, Elsevier, vol. 29(6), pages 807-821.

    More about this item

    Keywords

    High technology new firms; Strategic alliances; Capabilities perspective; New product development; Biotechnology industry;

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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