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Multilateral alliances and innovation output: The importance of equity and technological scope

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  • Xu, Shichun
  • Fenik, Anton P.
  • Shaner, Matthew B.

Abstract

The formation of R&D alliances has become an increasingly popular way to achieve improved innovation outcomes. However, R&D alliances face high failure rates due to the dual nature, cooperation and competition, of what can be a very challenging inter-firm relationship, a problem that is compounded when an alliance involves more than two partners. As such, it is important to understand the mechanisms that encourage cooperation in multilateral alliances to help firms achieve desired innovation outcomes. In this study, we hypothesize two such mechanisms: equity governance structure and multi-technology scope. We test our hypotheses using panel data from the pharmaceutical industry spanning 15years. Our results support the idea that equity governance and having a multiple technology scope are positively related to innovation outcomes in multilateral alliances.

Suggested Citation

  • Xu, Shichun & Fenik, Anton P. & Shaner, Matthew B., 2014. "Multilateral alliances and innovation output: The importance of equity and technological scope," Journal of Business Research, Elsevier, vol. 67(11), pages 2403-2410.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:11:p:2403-2410
    DOI: 10.1016/j.jbusres.2014.02.007
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    3. Qin Yang, 2018. "Geographical Diversity of Alliance Portfolio and Firm Innovation: The Roles of Resource Characteristics and Governance Structures," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(06), pages 1-22, December.
    4. Huarng, Kun-Huang & Mas-Tur, Alicia, 2015. "Spirit of strategy (S.O.S): The new S.O.S for competitive business," Journal of Business Research, Elsevier, vol. 68(7), pages 1383-1387.
    5. Li, Dan & Eden, Lorraine & Josefy, Matthew, 2017. "Agent and Task Complexity in Multilateral Alliances: The Safeguarding Role of Equity Governance," Journal of International Management, Elsevier, vol. 23(3), pages 227-241.
    6. Xu, Shichun & Hao, Andy, 2021. "Understanding the impact of national culture on firms’ benefit-seeking behaviors in international B2B relationships: A conceptual model and research propositions," Journal of Business Research, Elsevier, vol. 130(C), pages 27-37.
    7. Holz, Michael & Nielen, Sebastian & Paschke, Max & Schröder, Christian & Wolter, Hans-Jürgen, 2016. "Globale Vernetzung, Kooperation und Wertschöpfung im Mittelstand," IfM-Materialien 252, Institut für Mittelstandsforschung (IfM) Bonn.

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