Mind the Gap: Balancing Alliance Network and Technology Portolios During Periods of Technological Uncertainty

Abstract

While clique-embeddedness is generally considered to enhance firm performance, there are also reasons to expect that under conditions of technological turbulence clique-membership is less beneficial or might even become a liability. To address this, we study the innovative performance of clique members during periods of both technological change and technological stability. We find support for the idea that companies’ ability to adapt their alliance network (i.e. forming ties beyond the scope of the clique) and their ability to adapt their technology portfolios (i.e. access to novel technological knowledge) positively influences their innovative performance during technologically turbulent periods.

Keywords: strategic alliancs, cliques, technological turbulence