The relative performance effects of alliance partner diversity: a portfolio perspective

T. Leeuw, de, B. Lokshin, G.M. Duysters

Research output: Chapter in Book/Report/Conference proceedingConference contributionAcademic

Abstract

In this paper we explore the relative performance effects of diversity in a firm’s R&D alliance portfolio by considering different partner types (customers, suppliers, competitors, universities, research institutes, commercial laboratories, and own group firms). Using a panel dataset of innovation-active firms in the Netherlands during 1996-2006, we found that the diversity of a firm’s R&D alliance portfolio shows an inverted U-shaped relation on the share of radical innovation as well as financial performance. A positive, but with diminishing-returns, relation is found between APD and the share of incremental innovative performance. The results additionally suggest a relative lower diversity is needed to achieve optimal financial performance compared to radical innovative performance, while for incremental innovation the relative highest level of APD appears to be most beneficial.
Original languageEnglish
Title of host publicationProceedings of the Annual Meeting of the Academy of Management, August 3-7, 2012, Boston, USA
PublisherAOM
Publication statusPublished - 2012

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