Breadth and Depth of Alliance Experience on Technological Innovativeness

30 Pages Posted: 3 Mar 2009

See all articles by Rui Wu

Rui Wu

University of Southern California - Management and Organization Department

Date Written: March 2, 2009

Abstract

I examine impacts of alliance experience on partnering firms' innovative performance. Innovativeness indicates a firm's capabilities in creating competitive advantages. Using innovativeness as a novel measure of performance, I show empirical evidence that alliance experiences benefit partners through two paths: general partner experience (breadth) and duration of partnerships (depth). Breadth expands the pool of resource and knowledge in which a firm can access, thus increases the firm's exploration for innovative ideas. Duration of alliances determines the depth of knowledge developed in cooperative relationships. Such knowledge enables partners to transfer and to integrate resources with efficiency for innovative use. However, performance gains from duration diminish as relationships prolong.

Suggested Citation

Wu, Rui, Breadth and Depth of Alliance Experience on Technological Innovativeness (March 2, 2009). Atlanta Competitive Advantage Conference Paper. Available at SSRN: https://ssrn.com/abstract=1352091 or http://dx.doi.org/10.2139/ssrn.1352091

Rui Wu (Contact Author)

University of Southern California - Management and Organization Department ( email )

Los Angeles, CA 90089
United States

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