Technological dissimilarity in R&D alliances: The moderating effects of exploratory strategy and knowledge stock

Authors: Yen-Chih Huang; Chia-Chi Chang; Shao-Chi Chang

Journal: Corporate Management Review. Jun. 2021, 41(1): 125-162

Keywords: R&D alliance, technological dissimilarity, knowledge stock, exploration strategy

Abstract:
This study aims to examine how technological diversity between R&D partners affects firm performance. Drawing on the knowledge-based view, we posit that partner technological dissimilarity between R&D alliance partners has a curvilinear relationship with firm performance. Furthermore, two factors: a firm’s exploration strategy and knowledge stock, are identified as moderating this relationship. We conducted analyses on 747 R&D alliances announced during the period of 2001–2014 in the U.S. biopharmaceutical industry. The results reveal an inverted-U shaped relationship between partner technological dissimilarity and firm performance, which is positively moderated by a firm’s knowledge stock and exploration strategy. Possible explanations for our findings as well as their theoretical and practical implications are subsequently discussed herein.