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Geographical Diversity of Alliance Portfolio and Firm Innovation: The Roles of Resource Characteristics and Governance Structures

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  • Qin Yang

    (School of Business Robert Morris University 6001, University Blvd. Moon Township, PA 15108, United States)

Abstract

This paper explores how geographical diversity of an alliance portfolio benefits resource-based firm innovation. We propose that there are inverted U-shaped relationships between geographical diversity of an alliance portfolio and a firm’s radical and incremental innovation. In addition, resource characteristics and alliance governance structures are considered as important moderators between geographically diverse alliances and innovation. Relevant resources of alliance partners help focal firms to acquire valuable resources from different locations, thus improving organizational capabilities and achieving innovation. Governance structure choices concentrate on opportunism and transaction cost in coordinating resource sharing and recombination activities, which determine focal firms’ cost of knowledge management and then innovation outcome. Our research could advance the literature on alliance portfolio diversity by studying how firms use their alliance portfolio from diverse locations to recombine resources and then to enhance innovation, which remains less explored.

Suggested Citation

  • 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.
    • Handle: RePEc:wsi:ijitmx:v:15:y:2018:i:06:n:s0219877019500019
    DOI: 10.1142/S0219877019500019
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