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Knowledge breadth and depth development through successful R&D alliance portfolio configuration: An empirical investigation in the pharmaceutical industry

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  • Xu, Shichun
  • Cavusgil, Erin

Abstract

Organizational ambidexterity literature has emphasized the importance for firms to engage in dual activities of exploration (knowledge breadth) and exploitation (knowledge depth). However, little research has been done regarding what strategies firms need to adopt in order to achieve these two competing goals. This paper seeks to understand how different R&D alliance portfolio configuration strategies affect firms' ability to develop knowledge breadth and knowledge depth. The central argument is that different R&D alliance portfolio configuration strategies will produce different levels of knowledge structural benefit and relational capital benefit. A firm's preferences for different types of R&D alliance partners influence both the scope of external knowledge it is exposed to (knowledge breadth) as well as its ability to absorb and learn from its partners (knowledge depth). Using a panel data of 64 pharmaceutical firms over 15 years, our empirical results largely support the proposed hypotheses.

Suggested Citation

  • Xu, Shichun & Cavusgil, Erin, 2019. "Knowledge breadth and depth development through successful R&D alliance portfolio configuration: An empirical investigation in the pharmaceutical industry," Journal of Business Research, Elsevier, vol. 101(C), pages 402-410.
    • Handle: RePEc:eee:jbrese:v:101:y:2019:i:c:p:402-410
    DOI: 10.1016/j.jbusres.2019.04.030
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    Cited by:

    1. Bae, Joonhyung & Ozmel, Umit, 2024. "The interplay between product development failures and alliance portfolio properties in the formation of exploration versus exploitation alliances," Journal of Business Research, Elsevier, vol. 177(C).
    2. Wang, Yimin & Xin, Li, 2024. "Shadow of the giant: How global value chain participation influences the knowledge structure of SMEs," International Business Review, Elsevier, vol. 33(3).
    3. Xian Liu & Wenyu Wang & Yiyi Su, 2022. "Leveraging Complementary Resources through Relational Capital to Improve Alliance Performance under an Uncertain Environment: A Moderated Mediation Analysis," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    4. Kim, Nami & Kim, Eonsoo & Lee, Jongseon, 2021. "Innovating by eliminating: Technological resource divestiture and firms’ innovation performance," Journal of Business Research, Elsevier, vol. 123(C), pages 176-187.
    5. Su, Hsin-Ning & Moaniba, Igam M., 2020. "Does geographic distance to partners affect firm R&D spending? The moderating roles of individuals, firms, and countries," Journal of Business Research, Elsevier, vol. 106(C), pages 12-23.
    6. Zahoor, Nadia & Khan, Zaheer & Shenkar, Oded, 2023. "International vertical alliances within the international business field: A systematic literature review and future research agenda," Journal of World Business, Elsevier, vol. 58(1).
    7. Piscitello, Lucia & Thakur-Wernz, Pooja, 2023. "Impact of domestic and foreign knowledge mechanisms on the innovation performance of Indian firms," International Business Review, Elsevier, vol. 32(4).
    8. Shukla, Dhirendra Mani & Mital, Amita & Qureshi, Israr, 2024. "Effects of alliance portfolio breadth and depth on exploratory and exploitative innovation: Evidence from Indian high-tech sectors," Journal of Business Research, Elsevier, vol. 179(C).
    9. Lyu, Chongchong & Yang, Jianjun & Zhang, Feng & Teo, Thompson S.H. & Mu, Tian, 2020. "How do knowledge characteristics affect firm’s knowledge sharing intention in interfirm cooperation? An empirical study," Journal of Business Research, Elsevier, vol. 115(C), pages 48-60.

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