The Double-edged Sword of Technological Diversity in R&D Alliances: Moderators of the Relationship between Technological Diversity and Firm Performance

Yen-Chih Huang, Asia University
Ming-Chao Wang, Shih Chien University
Cheng-Yu Lee, Southern Taiwan University of Science and Technology

ABSTRACT
While the benefits of the technological diversity between alliance partners have been widely recognized, some scholars remain skeptical and warn of the potential negative consequences of such diversity. This study integrates these two contrary views to explore the notion of a nonlinear relationship between technological diversity and firm performance. We identify learning speed and network centrality as two critical moderators of this relationship. The results show that the degree of technological diversity between alliance partners exhibits an inverted U-shaped relationship with firm performance. Furthermore, this relationship is moderated by learning speed and network centrality.

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Updated 07/09/2013