Interorganizational alliances and the performance of firms: a study of growth and innovation rates in a high-technology industry

Abstract

This paper investigates the relationship between intercorporate technology alliances and firm performance. It argues that alliances are access relationships, and therefore that the advantages which a focal firm derives from a portfolio of strategic coalitions depend upon the resource profiles of its alliance partners. In particular, large firms and those that possess leading‐edge technological resources are posited to be the most valuable associates. The paper also argues that alliances are both pathways for the exchange of resources and signals that convey social status and recognition. Particularly when one of the firms in an alliance is a young or small organization or, more generally, an organization of equivocal quality, alliances can act as endorsements: they build public confidence in the value of an organization's products and services and thereby facilitate the firm's efforts to attract customers and other corporate partners. The findings from models of sales growth and innovation rates in a large sample of semiconductor producers confirm that organizations with large and innovative alliance partners perform better than otherwise comparable firms that lack such partners. Consistent with the status‐transfer arguments, the findings also demonstrate that young and small firms benefit more from large and innovative strategic alliance partners than do old and large organizations. Copyright © 2000 John Wiley & Sons, Ltd.

A Network-based view of regional growth

“…Organisations gain advantages from networks by accessing the knowledge of the organisations in their network. This means that the advantage organisations are potentially able to gain is dependent upon the knowledge profile of their network (Stuart 2000;Ireland et al 2002;Grant and Baden-Fuller 2004).…”

Quantity or quality? Knowledge alliances and their effects on patenting

“…Hence, the knowledge exchanged in this type of alliance may be new to one (or several) partnering firms, but existing to other partners. For example, the case of R&D alliances between established pharmaceutical firms and small biotechnology firms described by Stuart (2000) can be categorized as knowledge exchange alliances. Such agreements are designed in a way that the pharmaceutical firm provides funding for a research project to its partner and in exchange acquires the right to observe the processes, 9 procedures and results of the biotechnology firm.…”

The elixir (or burden) of youth? Exploring differences in innovation between start-ups and established firms

“…Sixth, prior research has found that firms that engage in R&D cooperative agreements are more innovative (Belderbos et al 2004;Stuart 2000). We measured this using an item in the survey that inquired whether firms collaborated with other firms and institutions for their innovative activities.…”