Firms increasingly adopt an open innovation model in which they rely on technology alliances to complement and supplement their internal innovation efforts. Although previous studies provide in-depth insight into the impact of technology alliances on the innovation performance, they remain relatively silent on how technology alliances eventually influence the financial performance of the firm. The purpose of this paper is to develop and test a conceptual framework that disentangles both the value-enhancing and cost-increasing effects of technology alliances on financial performance. The model was tested with a sample of 305 Belgian manufacturing firms. Combining data from the Belgian Community Information Survey (CIS IV) database and the BELFIRST database, structural equation analyses were conducted on the connection among technology alliance portfolio diversity, product innovation performance, and financial performance. This study's data provide empirical confirmation for the assumption of existing research that technology alliance portfolio diversity has an indirect positive impact on financial performance via increased product innovation performance. However, a direct cost-increasing effect of technology alliance portfolio diversity on financial performance is observed. Moreover, the structural equation analyses suggest that, in the short-term, the direct cost-increasing effect of technology alliance portfolio diversity exceeds the indirect value-generating effect of technology alliances. These findings contribute to the current research on open innovation in two important ways. First, these results support the open innovation model by illuminating the interconnectedness between internal and external innovation strategies. In particular, technology alliance portfolio diversity has a positive impact on internal innovation efforts, which increases product innovation performance. Second, the findings complement the focus of existing open innovation research on the value-generating properties of technology alliances, directing attention to the cost-increasing effects of such collaborative strategies. On a managerial level, these findings suggest that, when making technology alliance decisions, managers not only should consider the potential benefits of such collaborative strategies but also should take into account the additional costs of intensifying the technology alliance portfolio.
a b s t r a c tBased on a survey study of 155 U.S. firms, we conducted a firm-level assessment of the impact of different kinds of structures (i.e., functional versus cross-functional) in different kinds of new product development (NPD) processes (i.e., incremental versus radical) on different kinds of firm innovation performance (i.e., derivative versus breakthrough). We observe that most firms opt for similar structures for their incremental and radical NPD processes. At the same time, though, we find strong evidence that (1) firms that apply a cross-functional structure for the radical NPD process perform significantly better in terms of breakthrough innovation performance than firms that apply a functional structure for the radical NPD process and (2) firms that apply a functional structure for the incremental NPD process perform significantly better in terms of derivative innovation performance than firms that apply a cross-functional structure for the incremental NPD process. These latter findings point to the relevance of adopting structural ambidexterity, where firms make an explicit distinction between incremental and radical NPD processes and organize them in a different way.
Previous studies have provided valuable insights into how environmental and organizational factors may influence levels of explorative and exploitative innovation in firms. At the same time, scholars suggest that individual characteristics, such as cognitive and behavioural inclinations of top executives, might also have significant impact on the ability of a firm to engage in explorative and exploitative activities. The importance of the CEO is of interest, especially in medium-sized companies, where the CEO appears to be most influential. Very few studies, however, have quantitatively examined the relationship between individual characteristics of top managers and firm-level exploration and exploitation. Most of the existing research focuses on observable managerial characteristics and the composition of top management teams. Therefore, some important psychological issues may have been bypassed. This study complements prior research in two fundamental ways. First, whereas previous studies focus on extrinsic organizational factors that influence individual exploration and exploitation, werely on insights from cognitive psychology to hypothesize a relationship between intrinsic factors (i.e., cognitive style) and individuals' tendency for exploration versus exploitation. Second, whereas existing research remains silent on the implications of individual CEO characteristics for firm performance, we hypothesize a relationship between CEOs' tendency for exploration or exploitation and firm-level innovation performance.
With globalisation still on the rise firms precede building their global supply bases in order to defend or improve their position against domestic as well as international competitors. However, when focusing on low-cost countries this picture turns reverse. Caused by government policies as well as purchasing strategies employed, more and more firms decide to shift their focus from global to local sourcing. Some firms even go as far as establishing entirely local supply chains, a strategy also understood as deep localisation. Drawing on social capital theory, we examine the role that social capital pillars can play for the successful outcome of deep localisation projects. Here, we make use of the unique situation that deep localisation offers and focus on social capital in network relationships. Through applying case study methodology, we compare successful and non-successful cases, analysing data from an automotive OEM as well as 1st and 2nd tier suppliers. Results indicate that social capital can have a facilitating effect. The study extends literature on global sourcing and social capital theory and suggests important implications for research and practice.
Research into organizational ambidexterity at the interorganizational level is limited, but it is even more scarce when considering emerging markets and alternative organizational forms such as the cooperative enterprise. We will attempt to fill these research gaps by offering in‐depth case studies of three interfirm cooperatives within the printing industry in Colombia. We analyze how interfirm cooperatives enable organizational ambidexterity in its small‐to‐medium‐sized enterprises (SMEs), and explore which factors are hindering ambidexterity. Our findings indicate that lower socioemotional wealth in SMEs undermines the need to invest in exploration. Additionally, cooperation within an interfirm cooperative appears to be entirely reliant on its component SMEs agreeing on the right balance of social and economic values. We conclude that, although the interfirm cooperative may play an important role in facilitating ambidexterity in emerging markets, transitioning from a primarily transactional role to a higher role as intermediator of ambidexterity poses significant challenges.
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