Alliance portfolio diversity, radical and incremental innovation: The moderating role of technology management

Abstract

In this paper we test whether the use of a set of technology management tools (TM-tools), a specification of alliance portfolio capability, influences the relationship between alliance portfolio diversity and a firm's innovation outcomes. With this model, we add to the theoretical literature on the performance effects of alliance portfolio diversity and specific contingencies allowing to appropriate benefits from this diversity.Based on a sample of South African firms, we first confirm the inverted U-shaped relation between alliance portfolio diversity and a firm's innovation outcomes found by earlier research. We also show that the shape of this inverted-U differs for incremental and radical innovation outcomes. Subsequently, we test the moderating effect of the use of TM-tools on this relationship, for which find a strong positive moderating effect. In particular, for firms intensively using TM-tools, the negative effect of high levels of alliance portfolio diversity on innovation outcomes turns into a positive effect. This suggests that the use of formal technology management practices is beneficial to manage highly diverse alliance portfolios.

Capturing value from alliance portfolio diversity: The mediating role of R&D human capital in high and low tech industries

“…Studies report a curvilinear (inverted U-shaped) relationship between R&D alliance portfolio diversity (APD), defined as the distribution of differences in partn (Oerlemans et al, 2013), and firm innovation performance, suggesting that an increase in APD will enhance innovativeness only up to a certain limit. Beyond that point, APD may yield few marginal benefits as resources become spread too thin and greater coordination and integration costs are incurred (Chen et al, 2011, Duysters and Lokshin, 2011, de Leeuw et al, 2014.…”

“…Recent research suggests differing effects of APD on innovation novelty (Oerlemans et al, 2013) and reduced utility from alliance variety as firms become more innovative (Egbetokun, 2015). Radical innovation represents a dramatic departure from existing products in terms of technology and generate greater information processing and exposure to a variety of knowledge domains (Wuyts et al, 2004, Leifer et al, 2000.…”

Estratégias de Produção e a Relação com a Prática de Inovação Tecnológica

“…Nesse caso a inovação contribui apenas como um meio para atingir os objetivos primários da organização (Damanpour & Wischnevsky, 2006). Uma forma comum de abordar as inovações de produto e processo é classificá-las em radical ou incremental, as V. B. Silva, E. C. Sá Gazolla inovações radicais representam uma ruptura com o padrão tecnológico até então vigente originando novos produtos ou processos, as inovações incrementais referem-se às melhorias contínuas em produtos e processos, por meio da combinação e adaptação de tecnologias já existentes (Damanpour & Wischnevsky, 2006;Sainio, Ritala, & Hurmelinna--Laukkanen, 2012;Oerlemans, Knoben, & Pretorius, 2013).…”

“…Além disso, dada a classificação entre radical e incremental apresentada pela literatura (Damanpour & Wischnevsky, 2006;Sainio et al, 2012;Oerlemans et al, 2013) as inovações tecnológicas se relacionam a uma forma incremental de conduzir a inovação na empresa. Percebe-se a preocupação em desenvolver inovações de modo a manter e/ou aumentar a competitividade por meio da inovação, especialmente nos apontamentos que se referem a melhorias contínuas em produtos e processos que se deram por meio da combinação e adaptação de tecnologias já existentes.…”

Absorptive Capacity, Alliance Portfolios and Innovation Performance: An Analytical Model Based on Bibliographic Research

“…Considering the increasing participation of emerging countries in global alliances for innovation (Jacob, Belderbos & Gilsing, 2013), the model focussed on APs in emerging economies. Some studies investigate AC, AP and IP in emerging economies, but very few focus specifically on Latin America (García Fernández, Sánchez Limón & Sevilla Morales, 2012;Gomez, Daim, & Robledo, 2014;Oerlemans, Knoben & Pretorius, 2013) and all fail to consider their interaction, as proposed in our model.…”