Influence of alliance portfolio diversity on innovation performance: the role of internal capabilities of value creation

Abstract

In this study, we suggest a new perspective on the linkage between alliance portfolio diversity and innovation performance based on a contingency approach. Using a longitudinal data set on alliance portfolios and patents of 182 firms in the U.S. manufacturing industries, we examined that alliance portfolio diversity has a U-shaped relationship with firm-level innovation. Internal value creation capabilities in terms of routine and ability are found to moderate the relationship between alliance portfolio diversity and innovation performance: organizational search routine strengthens the relationship of alliance portfolio diversity and innovation performance while technological capabilities weaken and flip the relationship.

Managing and measuring performance in organizational development

“…All of this reveals the importance and scope of the research, which aims at modelling and optimizing the evaluation of the performance management system at a company level. Moreover, these findings were in line with previous studies (Ahn & Ok, 2017;Bol, 2011;Chung et al, 2018;Mendy, 2020), showing that an understanding of the economic and managerial mechanisms of operations under-pins the making of pertinent, real, and especially opportune decisions that could counter-act turbulent environmental threats and increase the potential of companies.…”

“…Today's entities are facing increasing transformation pressures -moving from product-centric business models to new models focused on creating and capturing different sources of new value (Akg€ un et al, 2019;Chung et al, 2018). Moreover, in this digital age, the economic entity's performance has exceeded its profitability limits and any development strategy involves taking into account in addition to KPI's performance indicators and predictability and sustainability indicators (G€ ok & Peker, 2017;Hale et al, 2016;Kwon & Rupp, 2013;Lin & Kwantes, 2015).…”

Enhancing sustainable supply chain management performance through alliance portfolio diversity: the mediating effect of sustainability collaboration

“…Instead of broadly exploring supplementary and complementary resources and sources of knowledge, firms tend to attentively request that their allied partners demonstrate their commitment and deeply exploit their available knowledge and resources (cf. Chung et al, 2019). Accordingly, the positive effects of the information elaboration process generated at low-to-moderate levels of governance diversity are substantial, because firms and alliances are motivated by equity investments to contribute their core competences and resources for exploitative collaboration purposes (Chen and Lin, 2016).…”

“…That is, at lower levels of diversity, governance structure diversity can benefit sustainability collaboration in that more equity investments from different alliances will encourage the commitment and devotion of alliances to sustainability goals. Firms can thus exploit partners' resources at different and more profound levels (Chung et al, 2019). Despite this, alliances may hesitate to devote more domain knowledge and expertise to the collaboration due to a concern of core competence protection (Manhart and Thalmann, 2015).…”

The Impact of Industry–University–Research Alliance Portfolio Diversity on Firm Innovation: Evidence from Chinese Manufacturing Firms

“…Besides, a significant body of studies have investigated the association between alliance portfolio diversity and a focal firm's innovation performance, but they have generated inconclusive results. Specifically, some research provides results showing that alliance portfolio diversity has an inverted U-shaped association with firm innovation performance [12,13], others argue that alliance portfolio diversity exerts a positive [14,15] or U-shaped impact on firm innovation performance [16]. Previous literature only pays attention to the impact of common alliance portfolios on firm innovation, lacking the explorations in the association between I-U-R alliance portfolio diversity and firm innovation performance.…”