IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v51y2016i3p474-485.html
   My bibliography  Save this article

Innovating across boundaries: A portfolio perspective on innovation partnerships of multinational corporations

Author

Listed:
  • Piening, Erk P.
  • Salge, Torsten Oliver
  • Schäfer, Sebastian

Abstract

This paper examines how and under what conditions alliance portfolio diversity influences a firm's innovative performance, with special attention being given to potential performance differences between multinational corporations (MNCs) and domestic firms. Analyses of data from 1045 German firms, among which 598 MNCs, revealed an inverted U-shaped relationship between alliance portfolio diversity and MNCs’ innovative performance. Findings also indicate MNCs to be better positioned than their domestic counterparts with regards to translating alliance portfolio diversity into superior innovative performance. Importantly though, this only holds for MNCs equipped with strong internal R&D capabilities and, to some extent, high human capital.

Suggested Citation

  • Piening, Erk P. & Salge, Torsten Oliver & Schäfer, Sebastian, 2016. "Innovating across boundaries: A portfolio perspective on innovation partnerships of multinational corporations," Journal of World Business, Elsevier, vol. 51(3), pages 474-485.
    • Handle: RePEc:eee:worbus:v:51:y:2016:i:3:p:474-485
    DOI: 10.1016/j.jwb.2016.01.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951616300013
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jwb.2016.01.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arie Y Lewin & Silvia Massini & Carine Peeters, 2009. "Why are companies offshoring innovation? The emerging global race for talent," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(8), pages 1406-1406, October.
    2. Joel A. C. Baum & Tony Calabrese & Brian S. Silverman, 2000. "Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 267-294, March.
    3. Anthony Goerzen & Paul W. Beamish, 2005. "The effect of alliance network diversity on multinational enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 26(4), pages 333-354, April.
    4. Michael Hitt & M. Tina Dacin & Edward Levitas & Jean-Luc Arregle & Anca Borza, 2000. "Partner Selection in Emerging and Developed Market Contexts : Resource-Based and Organizational Learning Perspectives," Post-Print hal-02276706, HAL.
    5. Gupta, Anil K. & Govindarajan, V., 1994. "Organizing for knowledge flows within MNCs," International Business Review, Elsevier, vol. 3(4), pages 443-457, December.
    6. Werner H. Hoffmann, 2007. "Strategies for managing a portfolio of alliances," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 827-856, August.
    7. Arie Lewin & Silvia Massini & Carine Peeters, 2008. "Why are companies offshoring innovation ?the emerging global race for talent," Working Papers CEB 08-009, ULB -- Universite Libre de Bruxelles.
    8. Bernard L. Simonin, 1999. "Ambiguity and the process of knowledge transfer in strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 20(7), pages 595-623, July.
    9. Bernard L Simonin, 2004. "An empirical investigation of the process of knowledge transfer in international strategic alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 407-427, September.
    10. Ulrich Wassmer, 2010. "Alliance Portfolios : A Review and Research Agenda," Post-Print hal-02313048, HAL.
    11. Masaaki Kotabe & Srini S Srinivasan & Preet S Aulakh, 2002. "Multinationality and Firm Performance: The Moderating Role of R&D and Marketing Capabilities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(1), pages 79-97, March.
    12. Ulrich Wassmer & Pierre Dussauge, 2012. "Network resource stocks and flows : How do alliance portfolios affect the value of new alliance formations?," Post-Print hal-02313044, HAL.
    13. Bercovitz, Janet E.L. & Feldman, Maryann P., 2007. "Fishing upstream: Firm innovation strategy and university research alliances," Research Policy, Elsevier, vol. 36(7), pages 930-948, September.
    14. Michael Hitt & M. Tina Dacin & Edward Levitas & Jean-Luc Arregle & Anca Borza, 2000. "Partner Selection in Emerging and Developed Market Contexts : Resource-Based and Organizational Learning Perspectives," Post-Print hal-02312691, HAL.
    15. Nooteboom, Bart & Van Haverbeke, Wim & Duysters, Geert & Gilsing, Victor & van den Oord, Ad, 2007. "Optimal cognitive distance and absorptive capacity," Research Policy, Elsevier, vol. 36(7), pages 1016-1034, September.
    16. Ulrich Wassmer & Pierre Dussauge, 2012. "Network resource stocks and flows: how do alliance portfolios affect the value of new alliance formations?," Strategic Management Journal, Wiley Blackwell, vol. 33(7), pages 871-883, July.
    17. Olivier Bertrand, 2011. "What goes around, comes around: Effects of offshore outsourcing on the export performance of firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(2), pages 334-344, February.
    18. Ruihua Joy Jiang & Qingjiu Tom Tao & Michael D. Santoro, 2010. "Alliance portfolio diversity and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 31(10), pages 1136-1144, October.
    19. Dovev Lavie & Stewart R. Miller, 2008. "Alliance Portfolio Internationalization and Firm Performance," Organization Science, INFORMS, vol. 19(4), pages 623-646, August.
    20. Paul Almeida & Jaeyong Song & Robert M. Grant, 2002. "Are Firms Superior to Alliances and Markets? An Empirical Test of Cross-Border Knowledge Building," Organization Science, INFORMS, vol. 13(2), pages 147-161, April.
    21. Hagedoorn, John & Wang, Ning, 2012. "Is there complementarity or substitutability between internal and external R&D strategies?," Research Policy, Elsevier, vol. 41(6), pages 1072-1083.
    22. Peter J. Buckley & Mark Casson, 1991. "The Future of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-21204-0, March.
    23. Kathleen M. Eisenhardt & Claudia Bird Schoonhoven, 1996. "Resource-based View of Strategic Alliance Formation: Strategic and Social Effects in Entrepreneurial Firms," Organization Science, INFORMS, vol. 7(2), pages 136-150, April.
    24. María Jesús Nieto & Alicia Rodríguez, 2011. "Offshoring of R&D: Looking abroad to improve innovation performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(3), pages 345-361, April.
    25. Anupama Phene & Paul Almeida, 2008. "Innovation in multinational subsidiaries: The role of knowledge assimilation and subsidiary capabilities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 901-919, July.
    26. Torsten Oliver Salge & Thomas Marc Bohné & Tomas Farchi & Erk Peter Piening, 2012. "Harnessing The Value Of Open Innovation: The Moderating Role Of Innovation Management," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-26.
    27. Ulrich Wassmer & Pierre Dussauge, 2012. "Network resource stocks and flows: how do alliance portfolios affect the value of new alliance formations?," Post-Print hal-00696858, HAL.
    28. Gnyawali, Devi R. & Park, Byung-Jin (Robert), 2011. "Co-opetition between giants: Collaboration with competitors for technological innovation," Research Policy, Elsevier, vol. 40(5), pages 650-663, June.
    29. Pierre Dussauge & Ulrich Wassmer, 2011. "Value Creation in Alliance Portfolios: The Benefits and Costs of Network Resource Interdependencies," Post-Print hal-00609489, HAL.
    30. Scott L. Newbert, 2007. "Empirical research on the resource‐based view of the firm: an assessment and suggestions for future research," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 121-146, February.
    31. Vega-Jurado, Jaider & Gutiérrez-Gracia, Antonio & Fernández-de-Lucio, Ignacio & Manjarrés-Henri­quez, Liney, 2008. "The effect of external and internal factors on firms' product innovation," Research Policy, Elsevier, vol. 37(4), pages 616-632, May.
    32. Liu, Chia-Ling (Eunice) & Ghauri, Pervez N. & Sinkovics, Rudolf R., 2010. "Understanding the impact of relational capital and organizational learning on alliance outcomes," Journal of World Business, Elsevier, vol. 45(3), pages 237-249, July.
    33. Arie Lewin & Silvia Massini & Carine Peeters, 2009. "Why are companies offshoring innovation the emerging global race for talent (Journal of International Business Studies (2009) 40 (901-925) DOI:10.1057/jibs.2008.92)," ULB Institutional Repository 2013/205625, ULB -- Universite Libre de Bruxelles.
    34. Liu, Xiaohui & Buck, Trevor, 2007. "Innovation performance and channels for international technology spillovers: Evidence from Chinese high-tech industries," Research Policy, Elsevier, vol. 36(3), pages 355-366, April.
    35. Ulrich Wassmer & Pierre Dussauge, 2011. "Value creation in alliance portfolios : The benefits and costs of network resource interdependencies," Post-Print hal-02313045, HAL.
    36. Mudambi, Ram & Swift, Tim, 2011. "Leveraging knowledge and competencies across space: The next frontier in international business," Journal of International Management, Elsevier, vol. 17(3), pages 186-189, September.
    37. Yamakawa, Yasuhiro & Yang, Haibin & Lin, Zhiang (John), 2011. "Exploration versus exploitation in alliance portfolio: Performance implications of organizational, strategic, and environmental fit," Research Policy, Elsevier, vol. 40(2), pages 287-296, March.
    38. de Leeuw, Tim & Lokshin, Boris & Duysters, Geert, 2014. "Returns to alliance portfolio diversity: The relative effects of partner diversity on firm's innovative performance and productivity," Journal of Business Research, Elsevier, vol. 67(9), pages 1839-1849.
    39. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    40. Dovev Lavie, 2007. "Alliance portfolios and firm performance: A study of value creation and appropriation in the U.S. software industry," Strategic Management Journal, Wiley Blackwell, vol. 28(12), pages 1187-1212, December.
    41. Frank T. Rothaermel & Andrew M. Hess, 2007. "Building Dynamic Capabilities: Innovation Driven by Individual-, Firm-, and Network-Level Effects," Organization Science, INFORMS, vol. 18(6), pages 898-921, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cozza, Claudio & Perani, Giulio & Zanfei, Antonello, 2016. "Are multinationals better at creating technical linkages with local firms?," Papers in Innovation Studies 2016/14, Lund University, CIRCLE - Centre for Innovation Research.
    2. Fu, Xiaolan & Fu, Xiaoqing (Maggie) & Ghauri, Pervez & Hou, Jun, 2022. "International collaboration and innovation: Evidence from a leading Chinese multinational enterprise," Journal of World Business, Elsevier, vol. 57(4).
    3. Beugelsdijk, Sjoerd & Jindra, Björn, 2018. "Product innovation and decision-making autonomy in subsidiaries of multinational companies," Journal of World Business, Elsevier, vol. 53(4), pages 529-539.
    4. Muhammad Masood Azeem & Syed Fazal‐e‐Hasan & Leopoldo Gutiérrez & Derek Baker, 2022. "Does functional diversity in interfirm collaborations lead to innovation diversity? Firm‐level evidence from the Australian food industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(3), pages 612-637, July.
    5. Alberto Melane-Lavado & Agustín Álvarez-Herranz, 2020. "Cooperation Networks as a Driver of Sustainability-Oriented Innovation," Sustainability, MDPI, vol. 12(7), pages 1-26, April.
    6. Sasa Ding & Frank McDonald & Yingqi Wei, 2021. "Is Internationalization Beneficial to Innovation? Evidence from a Meta-analysis," Management International Review, Springer, vol. 61(4), pages 469-519, August.
    7. Jesper N Wulff & Anders R Villadsen, 2020. "Keeping it within bounds: Regression analysis of proportions in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(2), pages 244-262, March.
    8. Patel, Pankaj C. & Parida, Vinit & Jayaram, Jayanth & Oghazi, Pejvak, 2018. "Task equivocality and process modularity in R&D offshore collaboration projects," Journal of Business Research, Elsevier, vol. 93(C), pages 12-22.
    9. Piotr Trąpczyński & Łukasz Puślecki & Michał Staszków, 2018. "Determinants of Innovation Cooperation Performance: What Do We Know and What Should We Know?," Sustainability, MDPI, vol. 10(12), pages 1-32, November.
    10. Ardito, Lorenzo & Peruffo, Enzo & Natalicchio, Angelo, 2019. "The relationships between the internationalization of alliance portfolio diversity, individual incentives, and innovation ambidexterity: A microfoundational approach," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    11. Kafouros, Mario & Wang, Chengqi & Mavroudi, Eva & Hong, Junjie & Katsikeas, Constantine S., 2018. "Geographic dispersion and co-location in global R&D portfolios: Consequences for firm performance," Research Policy, Elsevier, vol. 47(7), pages 1243-1255.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. J. Nils Foege & Erk P. Piening & Torsten-Oliver Salge, 2017. "Don’T Get Caught On The Wrong Foot: A Resource-Based Perspective On Imitation Threats In Innovation Partnerships," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-42, April.
    2. Kavusan, K., 2015. "Essays on capability development through alliances," Other publications TiSEM 8eb736a5-b217-4718-ac13-d, Tilburg University, School of Economics and Management.
    3. Doohee Chung & Marco Jinhwan Kim & Jina Kang, 2019. "Influence of alliance portfolio diversity on innovation performance: the role of internal capabilities of value creation," Review of Managerial Science, Springer, vol. 13(5), pages 1093-1120, November.
    4. Cobeña, Mar & Gallego, Ángeles & Casanueva, Cristóbal, 2017. "Heterogeneity, diversity and complementarity in alliance portfolios," European Management Journal, Elsevier, vol. 35(4), pages 464-476.
    5. Cobeña, Mar & Gallego, à ngeles & Casanueva, Cristóbal, 2019. "Diversity in airline alliance portfolio configuration," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 16-26.
    6. de Leeuw, Tim & Lokshin, Boris & Duysters, Geert, 2014. "Returns to alliance portfolio diversity: The relative effects of partner diversity on firm's innovative performance and productivity," Journal of Business Research, Elsevier, vol. 67(9), pages 1839-1849.
    7. Tom Broekel & Matthias Brachert, 2015. "The structure and evolution of inter-sectoral technological complementarity in R&D in Germany from 1990 to 2011," Journal of Evolutionary Economics, Springer, vol. 25(4), pages 755-785, September.
    8. Rogbeer, Shalini & Almahendra, Rangga & Ambos, Björn, 2014. "Open-Innovation Effectiveness: When does the Macro Design of Alliance Portfolios Matter?," Journal of International Management, Elsevier, vol. 20(4), pages 464-477.
    9. Manuela N. Hoehn-Weiss & Samina Karim & Chi-Hyon Lee, 2017. "Examining Alliance Portfolios Beyond the Dyads: The Relevance of Redundancy and Nonuniformity Across and Between Partners," Organization Science, INFORMS, vol. 28(1), pages 56-73, February.
    10. Casanueva, Cristóbal & Gallego, Ángeles & Sancho, María, 2013. "Network resources and social capital in airline alliance portfolios," Tourism Management, Elsevier, vol. 36(C), pages 441-453.
    11. Casanueva, Cristóbal & Gallego, Ángeles & Castro, Ignacio & Sancho, María, 2014. "Airline alliances: Mobilizing network resources," Tourism Management, Elsevier, vol. 44(C), pages 88-98.
    12. Castro, Ignacio & Casanueva, Cristóbal & Galán, José Luis, 2014. "Dynamic evolution of alliance portfolios," European Management Journal, Elsevier, vol. 32(3), pages 423-433.
    13. Cho, Sam Yul & Arthurs, Jonathan D., 2018. "The influence of alliance experience on acquisition premiums and post-acquisition performance," Journal of Business Research, Elsevier, vol. 88(C), pages 1-10.
    14. Jacob, Jojo & Belderbos, René & Lokshin, Boris, 2023. "Entangled modes: Boundaries to effective international knowledge sourcing through technology alliances and technology-based acquisitions," Technovation, Elsevier, vol. 122(C).
    15. Martinez-Noya, Andrea & Narula, Rajneesh, 2018. "What more can we learn from R&D alliances? : A review and research agenda," MERIT Working Papers 2018-022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Klaus Marhold & Marco Jinhwan Kim & Jina Kang, 2017. "The Effects Of Alliance Portfolio Diversity On Innovation Performance: A Study Of Partner And Alliance Characteristics In The Bio-Pharmaceutical Industry," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-24, January.
    17. 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).
    18. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    19. Guo, Min & Yang, Naiding & Wang, Jingbei & Zhang, Yanlu & Wang, Yan, 2021. "How do structural holes promote network expansion?," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    20. Messeni Petruzzelli, Antonio, 2019. "Trading knowledge for status: Conceptualizing R&D alliance formation to achieve ambidexterity," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 36-42.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:51:y:2016:i:3:p:474-485. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.