More Good Things are not Necessarily Better: An Empirical Study of Strategic Alliances, Experience Effects, and Innovative Output in High-Techology Start-ups
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We study the relationship between alliance activity and different types of alliances on new product development (NPD). Our sample contains 2,226 alliances in the biotechnology industry, entered into by 325 start-ups over 25 years. The results indicate that the relationship between alliance activity and NPD takes on an inverted U-shaped function. We also find that a firm’s capability to manage alliances increases as uncertainty in the NPD process decreases. Further, there exists a positive experience effect on firm alliance capability.
Academy of Management Proceedings