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Innovation in Technology Alliance Networks
This book studies the dynamics of alliance group formation in technology-based networks. The author attempts to develop the concept of alliance blocks from a social network perspective, and explores the relationship between alliance block membership and innovative performance in a changing technological environment. The book demonstrates that as an alliance network grows, the likelihood of alliance block formation also increases. The author presents evidence that pursuing a block membership strategy favourably affects innovative performance. This is true for conditions of both cumulative and disruptive technological change. However, over time the technology profiles of alliance block members tend to become more similar, which can eventually lead to a reduction in innovative activity. She also reveals that, when compared to their non-member counterparts, firms in alliance blocks are likely to apply for more patents, hold more central positions in the network, have larger revenues and undertake more R&D intensive research. In addition, they are also inclined to originate from an Asian background.
This is the first book to propose a well-developed theoretical framework, supported by empirical evidence, to explain alliance block formation processes and their effect on innovative performance. As such, it fills a substantial gap in the literature on competitive rivalry among alliances, an increasingly important area of research. It will be essential reading for academics and practitioners in the fields of industrial organization, strategic management, technological alliances, competition and innovation studies.
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What Reviewers Are Saying
'This book provides us with valuable insights into the alliance network that has come into existence in one of the largest IT-based sectors, i.e. microelectronics, and the evolution of this network structure over time. Furthermore, the study makes a significant contribution to the existing theory on alliances and networks by showing that there is a clear shift in the embeddedness logic underlying the development of the microelectronics network and the formation of alliance blocks within this network over time.' -- Nadine Roijakkers, Journal of Evolutionary Economics 'The rapid proliferation of alliances has not only initiated new forms of cooperation among companies but also ushered in a new era of competition. Today, cooperative agreements have become an integral part of competitive strategies. In spite of the many books on alliances, this excellent text is one of the first to integrate collaborative behaviour and technology competition into one comprehensive framework. This is an essential book for every manager and academic interested in the use of alliances for innovative renewal.' -- Geert Duysters, Eindhoven University of Technology, The Netherlands 'This careful study analyzes how alliances transform rivalry from firm versus firm to group versus group. It shows that a firm's network of alliances influences its performance and strategic options - enhancing competitive advantage at times, but also constraining flexibility at other times. A must-read for anyone thinking about alliance strategy.' -- Benjamin Gomes-Casseres, Brandeis University, US