Read the working paper
INSEAD Working paper 2014/49/EFE
This study examines the performance implications of competition for access to the resources of a firm’s alliance partners. Partner time and attention may be non-scale free resources, with their use in particular contexts constrained when applied across multiple relationships. Consequently, the other relationships in which a firm’s alliance partners are engaged can influence the firm’s returns to its alliance collaborations. Using a panel dataset of biotechnology start-ups I find that greater overlap in the R&D function between a start-up’s alliances and its partners’ other relationships can reduce start-up innovation output. I theorize that this stems from a reduction in knowledge spillovers from the partners, and I investigate the contingencies moderating this effect, as well as the conditions under which such effects may be less salient.