This study considers the impact of diversification in types of technological alliances, resulting in alliance portfolio diversity, on various dimensions of a firm's performance, as they relate to exploration and exploitation. Using a large panel of innovative firms in the Netherlands, this study shows that partner type diversity in a firm's alliance portfolio has an inverted U-shaped relationship with productivity and radical innovative performance and a positive relationship with incremental innovative performance. Moreover, the results suggest that a lower level of diversity is needed to achieve an optimal level of productivity compared to radical innovative performance, whereas for incremental innovative performance a higher level of portfolio diversity appears to give the best performance.
View graph of relations
- R&D collaboration, Radical innovation, Incremental innovation, Technological alliances, Alliance portfolio diversity, RESEARCH-AND-DEVELOPMENT, DEVELOPMENT COOPERATION, STRATEGIC ALLIANCES, TECHNOLOGICAL INNOVATION, COMPETITIVE ADVANTAGE, ABSORPTIVE-CAPACITY, KNOWLEDGE, NETWORKS, COLLABORATION, RESOURCES