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.
|Title of host publication||Proceedings of the Annual Meeting of the Academy of Management, August 3-7, 2012, Boston, USA|
|Publication status||Published - 2012|