More Good Things are not Necessarily Better: An Empirical Study of Strategic Alliances, Experience Effects, and Innovative Output in High-Techology Start-ups



Date of this version


Document Type

Book Chapter


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.

Published in

Academy of Management Proceedings

Citation/Other Information

In: M.A. Hitt, R. Amit, C. Lucier, R. D. Nixon (Eds.), Creating Value: Winners in the New Business Environment, pp. 85-103, Oxford, UK: Blackwell. (Book based on the 2000 SMS Conference Best Papers)