The complementary effect of partner selection and alliance scope on the innovative performance of R&D alliances

This paper investigates how the scope of technological search performed by allied firms complements the effect of two major partner selection criteria on the innovative performance of strategic alliances. Based on the empirical analysis of 1,912 R&D alliances in the EEE industry, we show that the selection of both: (1) distant partners, and (2) partners belonging to the same industrial group as the selecting firm, exert a negative impact on innovation. However, the impact of the two selection criteria on the alliance innovative performance is positive when the alliance is aimed at searching widely. We argue that the wider search scope the more knowledge diversity between partners and the existence of strong control mechanisms within the relationship enhance innovation in R&D alliances.