How do contextual factors affect a firm´s R&D alliance performance? A study of biotech industry

Since prior research suggests that the technological diversity between R&D partners provides firms vehicles to learn partners´ embedded knowledge and then enhance their organizational outcomes. Although the literature of technological diversity between R&D partners has long been accumulating, its performance implication has yet been conclusive, particularly overlooking the focal firm´s learning strategy and experience which are critical to focal firm´s learning from its partners. This study employs event study to extend the technological diversity-performance relationship to contingency perspectives. The results reveal that the announcing firm´s exploration strategy and knowledge stock can soften the negative effect of technological diversity on market response.