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research-article

Technology Conglomeration, Strategic Alliances, and Corporate Innovation

Authors: Kai Li, Jiaping Qiu,

Jin WangAuthors Info & Claims

Management Science, Volume 65, Issue 11

Pages 5065 - 5090

https://doi.org/10.1287/mnsc.2018.3085

Published: 01 November 2019 Publication History

Abstract

We examine the organizational choice and innovative activity of technology conglomerates—firms that explore different technology fields with heated inventive activity. We develop a measure of firm-to-economy technological proximity to capture the extent of a firm’s technology conglomeration. We show that technology conglomerates are more likely to form alliances and that these alliances lead to higher patent output. In terms of underlying mechanisms, we show that after alliance formation, there are significant knowledge pooling and cross-fertilization between technology conglomerates and their alliance partners. Moreover, technology conglomerates produce more patents that are novel and/or with greater impact. Our findings suggest that both synergy and tolerance for failure are important motives for technology conglomerates to use alliances to accelerate corporate innovation.

This paper was accepted by Gustavo Manso, finance.

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Cited By

Kini OLee SShen M(2024)Common Institutional Ownership and Product Market ThreatsManagement Science10.1287/mnsc.2023.483070:5(2705-2731)Online publication date: 1-May-2024
https://dl.acm.org/doi/10.1287/mnsc.2023.4830
Xie FZhang BZhang W(2022)Trust, Incomplete Contracting, and Corporate InnovationManagement Science10.1287/mnsc.2021.405568:5(3419-3443)Online publication date: 1-May-2022
https://dl.acm.org/doi/10.1287/mnsc.2021.4055
Ng KSo MTam K(2021)A Latent Space Modeling Approach to Interfirm Relationship AnalysisACM Transactions on Management Information Systems10.1145/342424012:2(1-44)Online publication date: 12-Jan-2021
https://dl.acm.org/doi/10.1145/3424240

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Published In

cover image Management Science

Management Science Volume 65, Issue 11

November 2019

498 pages

ISSN:0025-1909

DOI:10.1287/mnsc.2019.65.issue-11

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Copyright © 2019, INFORMS.

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INFORMS

Linthicum, MD, United States

Publication History

Published: 01 November 2019

Accepted: 02 March 2018

Received: 06 February 2017

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Cited By

Kini OLee SShen M(2024)Common Institutional Ownership and Product Market ThreatsManagement Science10.1287/mnsc.2023.483070:5(2705-2731)Online publication date: 1-May-2024
https://dl.acm.org/doi/10.1287/mnsc.2023.4830
Xie FZhang BZhang W(2022)Trust, Incomplete Contracting, and Corporate InnovationManagement Science10.1287/mnsc.2021.405568:5(3419-3443)Online publication date: 1-May-2022
https://dl.acm.org/doi/10.1287/mnsc.2021.4055
Ng KSo MTam K(2021)A Latent Space Modeling Approach to Interfirm Relationship AnalysisACM Transactions on Management Information Systems10.1145/342424012:2(1-44)Online publication date: 12-Jan-2021
https://dl.acm.org/doi/10.1145/3424240

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