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

Quantifying knowledge exchange in R&D networks: A data-driven model

We propose a model that reflects two important processes in R&D activities of firms, the formation of R&D alliances and the exchange of knowledge as a result of these collaborations. In a data-driven approach, we analyze two large-scale data sets extracting unique information about 7500 R&D alliances and 5200 patent portfolios of firms. This data is used to calibrate the model parameters for network formation and knowledge exchange. We obtain probabilities for incumbent and newcomer firms to link to other incumbents or newcomers which are able to reproduce the topology of the empirical R&D network. The position of firms in a knowledge space is obtained from their patents using two different classification schemes, IPC in 8 dimensions and ISI-OST-INPI in 35 dimensions. Our dynamics of knowledge exchange assumes that collaborating firms approach each other in knowledge space at a rate $\mu$ for an alliance duration $\tau$. Both parameters are obtained in two different ways, by comparing knowledge distances from simulations and empirics and by analyzing the collaboration efficiency $\mathcal{\hat{C}}_{n}$. This is a new measure, that takes also in account the effort of firms to maintain concurrent alliances, and is evaluated via extensive computer simulations. We find that R&D alliances have a duration of around two years and that the subsequent knowledge exchange occurs at a very low rate. Hence, a firm's position in the knowledge space is rather a determinant than a consequence of its R&D alliances. From our data-driven approach we also find model configurations that can be both realistic and optimized with respect to the collaboration efficiency $\mathcal{\hat{C}}_{n}$. Effective policies, as suggested by our model, would incentivize shorter R&D alliances and higher knowledge exchange rates.Comment: 35 pages, 10 figure

Unbundling dynamic capabilities for inter-organizational collaboration

Purpose The purpose of this paper is to explore two distinct subsets of dynamic capabilities that need to be deployed when pursuing innovation through inter-organizational activities, respectively, in the contexts of broad networks and specific alliances. The authors draw distinctions and explore potential interdependencies between these two dynamic capability reservoirs, by integrating concepts from the theoretical perspectives they are derived from, but which have until now largely ignored each other – the social network perspective and the dynamic capabilities view. Design/methodology/approach The authors investigate nanotechnology-driven R&D activities in the 1995–2005 period for 76 publicly traded firms in the electronics and electrical equipment industry and in the chemicals and pharmaceuticals industry, that applied for 580 nanotechnology-related patents and engaged in 2,459 alliances during the observation period. The authors used zero-truncated Poisson regression as the estimation method. Findings The findings support conceptualizing dynamic capabilities as four distinct subsets, deployed for sensing or seizing purposes, and across the two different inter-organizational contexts. The findings also suggest potential synergies between these subsets of dynamic capabilities, with two subsets being more macro-oriented (i.e. sensing and seizing opportunities within networks) and the two other ones more micro-oriented (i.e. sensing and seizing opportunities within specific alliances). Practical implications The authors show that firms differ in their subsets of dynamic capabilities for pursuing different types of inter-organizational, boundary-spanning relationships (such as alliances vs broader network relationships), which ultimately affects their innovation performance. Originality/value The authors contribute to the growing body of work on dynamic capabilities and firm-specific advantages by unbundling the dynamic capability subsets, and investigating their complex interdependencies for managing different types of inter-organizational linkages. The main new insight is that the “linear model” of generating more innovations through higher inter-firm collaboration in an emerging field paints an erroneous picture of how high innovation performance is actually achieved

Knowledge Structures.

This paper investigates how technological distance between firms affects their network of R&D alliances. Our theoretic model assumes that the benefit of an alliance between two firms is given by their technological distance. This benefit-distance relationship determines the ego-network of each firm as well as the overall network structure. Empirical relevance is confirmed for the bio-pharmaceutical industry. Although we find that the network structure is largely explained by firm size, technological distance determines the positioning of firms in the network.technological distance, research alliance, network formation, pharmaceutical industry.

Pan-European industrial networks as factor of convergence or divergence within Europe

Book description: European integration can no longer be understood as a west European experiment mainly focused on functional and economic policy cooperation. The issues addressed include security and defence, as well as core concerns of European society. This volume explores three interlocking dimensions of integration; functional, territorial, and affiliational. Each dimension influences how countries across the continent engage with European integration. This first volume in the One Europe or Several? series identifies the agenda of a research programme, funded by the British Economic and Social Research Council

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

Cognitive & Relational Distance in Alliance Networks: Evidence on the Knowledge Value Chain in the European ICT Sector

This paper deals with the firms’ motives for entering into knowledge partnerships. We start by showing that networking strategies are designed to access external knowledge whilst maintaining at the same time a sufficient level of knowledge appropriation and tradability. The ICT sector (and interplaying ones) is particularly concerned by this accessibility/appropriation trade-off. The questions of modularity, complementarity, compatibility and standardisation are critical in the formation of corporate strategic and technological partnerships. Considering that knowledge in this sector is complex and systemic, we construct a theoretical typology of knowledge partnerships by crossing the levels of cognitive and relational proximity with the knowledge phases of exploration, examination and exploitation. This typology is then tested on empirical data through the use of a classification algorithm. The dataset is based on a sample of strategic alliances in the European ICT sector extracted from SDC Platinum. We show that strategic alliances are clustered in relation to the knowledge phases (exploration, examination, exploitation), and that the alliance categories are characterised by levels of relational and cognitive distance which actually are in keeping with the theoretical predictions.knowledge networks; knowledge phases; proximities; strategic alliances; ICT sector

Network Embeddedness and the Exploration of Novel Technologies: Technological Distance, Betweenness Centrality and Density

In this paper we analyze the innovative performance of alliance networks as a function of the technological distance between partners, a firm's network position (centrality) and total network density.We study how these three elements of an alliance network, apart and in combination, affect the 'twin tasks' in exploration, namely novelty creation on the one hand and its efficient absorption on the other hand.For an empirical test, we study technology-based alliance networks in the pharmaceutical, chemical and automotive industry.innovation networks;cognitive distance;centrality;density