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-a-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.strategic technology alliances, alliance block membership strategy, microelectronics industry, group-based competition

The Innovative Performance of Alliance Block Members: Evidence from the Microelectronics Industry

The primary goal of this paper is to improve our understanding of the complex relationship between the positioning of companies in alliance networks and their innovative performance. In particular, we expect that a firm's innovative performance depends partly on its position in specific network settings (block membership or nonblock membership), with additional effects caused by the technology positioning strategies firms pursue in terms of technological specialization in alliance blocks. Alliance groups derive their competitive advantage from their superior and particular technologies, which they develop and exploit together in the alliance blocks. Incorporating this moderating effect of the degree of technological specialization in alliance blocks (exploitation or exploration) seems to give more insight in the contextual issues in this stream of literature.strategic technology alliances, alliance block membership strategy, microelectronics industry, innovative performance, technology strategies