6533b7dcfe1ef96bd1273324

RESEARCH PRODUCT

Innovating across boundaries: A portfolio perspective on innovation partnerships of multinational corporations

Torsten Oliver SalgeSebastian SchäferErk Peter Piening

subject

Marketingbusiness.industry05 social sciencesPerspective (graphical)International tradeHuman capitallanguage.human_languageGermanAllianceMultinational corporation0502 economics and businesslanguagePortfolio050211 marketingBusinessBusiness and International Management050203 business & managementFinanceIndustrial organizationDiversity (business)

description

Abstract This paper examines how and under what conditions alliance portfolio diversity influences a firm's innovative performance, with special attention being given to potential performance differences between multinational corporations (MNCs) and domestic firms. Analyses of data from 1045 German firms, among which 598 MNCs, revealed an inverted U-shaped relationship between alliance portfolio diversity and MNCs’ innovative performance. Findings also indicate MNCs to be better positioned than their domestic counterparts with regards to translating alliance portfolio diversity into superior innovative performance. Importantly though, this only holds for MNCs equipped with strong internal R&D capabilities and, to some extent, high human capital.

https://doi.org/10.1016/j.jwb.2016.01.001