The bumpy road of technology partnerships: Understanding causes and consequences of partnership mal-functioning
Boris Lokshin, John Hagedoorn & Wilko Letterie
#2010-057
Research on technological partnerships has traditionally sought
explanation of their high failure rates in partner characteristics and
relationship features. This study introduces the notion of a 'bumpy
road' in technology partnerships which refers to undesired outcomes such
as 'partnership mal-functioning' and 'instability' to the degree to
which innovation activities are hampered. We explain how firm-level
strategies can reduce the probability of a 'bumpy road' in partnerships.
We also assess the impact of this 'bumpy road' on innovative
performance. We find that firms that excel in diversification of
external activities (in terms of different types of partners) perform
best. Moreover, a persistent product oriented innovation strategy geared
at developing new products, new markets, or higher product quality will
yield more stable partnership outcomes. Our results confirm that
engagement in partnerships is beneficial for innovative performance.
However, firms that experienced a 'bumpy road' in their technological
partnerships have to pay a price in terms of a negative effect on their
innovative performance. (160 words)
Keywords: R&D Collaboration; Technological performance; Innovation; alliance failure
JEL classification: O31; O32
UNU-MERIT Working Papers
ISSN 1871-9872