Effects of extent and diversity of alliancing on innovation: the moderating role of firm newness

Marcus Wagner and Wilfried Zidorn ()
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Wilfried Zidorn: Universidad de Las Américas

Small Business Economics, 2017, vol. 49, issue 4, No 11, 919-936

Abstract: Abstract The purpose of this paper is to show the varying effects of alliance portfolio size and heterogeneity on innovation in biotechnology firms. Previous literature has indicated that the number and heterogeneity of partners in an alliance portfolio might have positive effects on innovativeness. Yet, engaging in multiple and heterogeneous collaborations also raises managerial costs and complexity levels disproportionally, potentially causing detrimental performance effects. Analysis of a unique panel dataset suggests that engaging in many alliances generally has a positive influence on a firm’s innovation output. Furthermore, maintaining diverse alliance portfolios and a high extent of alliancing jointly affects a firm’s innovation output negatively. By additionally showing that younger firms benefit disproportionally from both alliance portfolio diversity and size, this study provides a more nuanced view of alliancing effects.

Keywords: Alliances; Biotechnology; Innovation; Diversity; Entrants (search for similar items in EconPapers)
JEL-codes: L24 L25 M13 O32 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s11187-017-9873-7

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