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Technological Exploration And Market Exploitation In Interfirm Alliances

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  • Varghese P. George

Abstract

This paper empirically examines the dichotomous contribution for innovation, for technological exploration and market exploitation, from alliances. Using a sample from US economy-wide alliances of US Public companies and employing cross-tabulation of various classifications of alliances and parent firms, the related phenomena are investigated. Results show that alliances are predominantly undertaken by technology-intensive companies and their frequency has a direct association with the parental technological intensity. However, technological explorative purposes do not dominate in the complete sample of alliances. Many firms, whether technologically intensive or not, enter into alliances also for market exploitative purposes. This contingent phenomenon shows that alliances offer a very important additional role that is not all technology centered, but that is also deeply market centered.

Suggested Citation

  • Varghese P. George, 2014. "Technological Exploration And Market Exploitation In Interfirm Alliances," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 7(2), pages 1-14.
    • Handle: RePEc:ibf:ijmmre:v:7:y:2014:i:2:p:1-14
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    More about this item

    Keywords

    Exploration; Exploitation; Innovation; Ambidexterity; Alliances; Technological Intensity;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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