The Effect of R&D Alliance Diversity and Network Position on Firm Innovation Performance: Evidence from the Emerging Biotechnology Industry

Abstract

Despite increasing attention to the role of diverse alliances in emerging market, few studies have explicitly explored the roles of environment and network position on diverse R&D alliances. This study investigates how environment and network position interact with diverse R&D alliances to affect firm innovation performance. Specifically, we examine the moderating effects of technology uncertainty, market uncertainty, network centrality position and competitive intensity. The findings from a survey of 144 biotechnology firms indicate that diverse R&D alliances have a positive effect on firms’ innovation performance, and these effects are moderated by environmental factors and alliance network position. The overall R&D alliance network was also examined to understand a broad variety of collaboration patterns of emerging biotechnology firms.