Asymmetric effects of alliance intensity on absorptive capacity: the differences between potential and realized capacities

Abstract

PurposePrior research suggests that organizational alliances' contribution to innovation performance is conditional to absorptive capacity (AC). Instead of an antecedent of alliances, in this study, the authors conceptualize and evaluate AC as an outcome of alliance intensity.Design/methodology/approachThe authors tested their theoretical framework using multivariate statistical analysis on data collected from a survey applied to dedicated biotechnology firms (DBFs) from three countries: Brazil, Portugal and Spain.FindingsFirst, the results show that whereas the high alliance intensity effect is positive and stronger on RAC, it is negative and weaker on PAC. Second, the alliance intensity effect on RAC is strengthened when firms have alliances only in their home country and the top manager does not have both academic and managerial experiences.Practical implicationsThe authors’ study suggests as implications for DBFs: (1) firms should form alliances to develop AC, (2) firms should consider alliances for improving AC when top managers' expertise is not diverse, and (3) firms should consider only alliances with national partners as a differential for AC development.Originality/valueThis research contributes to the literature of dynamic capabilities, AC, alliances and innovation management by providing empirical validation for key contingencies surrounding the benefits of alliances as an antecedent of AC.

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