Returns to alliance portfolio diversity

The relative effects of partner diversity on firm’s innovative performance and productivity

T. de Leeuw, B. Loshin, G.M. Duijsters

Research output: Contribution to journalArticleScientificpeer-review

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.
Original languageEnglish
Pages (from-to)1839-1849
JournalJBR: Journal of Business Research
Volume67
Issue number9
DOIs
Publication statusPublished - Sep 2014

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Productivity
Innovative performance
Alliance portfolios
Incremental
Alliances
Exploration and exploitation
Diversification
Inverted-U
Firm performance
The Netherlands

Keywords

  • R&D collaboration
  • radical innovation
  • incremental innovation
  • technological alliances
  • alliance portfolio diversity

Cite this

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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.",
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Returns to alliance portfolio diversity : The relative effects of partner diversity on firm’s innovative performance and productivity. / de Leeuw, T.; Loshin, B.; Duijsters, G.M.

In: JBR: Journal of Business Research, Vol. 67, No. 9, 09.2014, p. 1839-1849.

Research output: Contribution to journalArticleScientificpeer-review

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KW - incremental innovation

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