Abstract
With external innovation becoming more and more important, many firms struggle with the question of how to balance their technology-sourcing portfolio. This study addresses this issue by looking at the effects of portfolio diversity on performance outcomes and the conditions under which diversity is most likely to materialize. Using a dataset of strategic investments by pharmaceutical firms, the results show that the variance in relative technological proximity between the focal firm and its partners exhibits an inverted U-shaped relationship with innovative performance and that this relationship is affected by the diversity of the external sourcing modes used in the portfolio.
Original language | English |
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Pages (from-to) | 610-621 |
Number of pages | 12 |
Journal | Strategic Management Journal |
Volume | 34 |
Issue number | 5 |
Early online date | 23 Nov 2012 |
DOIs | |
Publication status | Published - 2013 |
Research programs
- RSM S&E