Alliance block composition patterns in the microelectronics industry

In this note we examine whether a position in a technology alliance block is accessible to everyone. It appears that partners are selected on the basis of distinctive attributes they have, which can inhibit outsiders to join these alliance groups. Our findings clearly indicate that alliance blocks are composed of actors that have rather similar characteristics. The social selection processes that alliance block members employ vis-à-vis non-block members can create a source of competitive advantage in terms of a higher innovative performance. Empirical research is focused on the international microelectronics industry.

Key words: strategic technology alliances, alliance block membership strategy, microelectronics industry, group-based competition

Jel Codes: O31, O32

UNU-MERIT Working Papers ISSN 1871-9872