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Impact of extended alliance portfolio configuration on firm innovation

Published online by Cambridge University Press:  11 June 2018

Ho-Sung Kim
Ho-Sung Kim*
Affiliation:
Technology Management Economics and Policy Program (TEMEP), Seoul National University, Seoul, South Korea
*
Corresponding author: khs21@snu.ac.kr
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Abstract

In the past, alliance portfolio configuration (APC) studies concentrated mostly on the direct alliances or partners of a focal firm. However, a focal firm is also influenced by indirect alliances or partners. This study endeavors to focus on this aspect of APC. It contributes to APC research by extending the scope to three degrees from a focal firm. To assess the effects of extended APCs, 186 3-year window snapshots were created of the extended APCs of 31 Korean bio-pharmaceutical firms. These snapshots range from 2007 to 2014. The effects of structure (density), size (number of alliances and partners), and relationships to firm innovation were measured using the two-step generalized method of moments estimates. The results show that structural sparseness and larger-sized extended APCs are more favorable conditions for innovation, and that structural sparseness and size have a positive relationship to innovation performance.

Keywords

alliance portfolioextended alliance portfolio configurationThree Degrees of Influence Rulesizedensity
Type
Research Article
Information
Journal of Management & Organization , Volume 27 , Issue 1 , January 2021 , pp. 131 - 147
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2018

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