The Impact of Strategic Alliance Partner Characteristics on Firms’ Innovation: Evidence from Jordan

Abstract

The aim of this study is to examine the impact of strategic alliance partner characteristics namely (partner complementarity, partner commitment, and partner compatibility) on firm's innovation, which includes incremental innovation and radical innovation. The population of the study contained (13) Jordanian Pharmaceutical companies, and the sample unit consisted from (122) managers and head of divisions working in strategic alliances, marketing and production areas within the target companies. In order to gathering the data required for measuring the study variables a questionnaire was developed. The results of the study showed that the strategic alliance partner characteristics had a significant impact on the Jordanian pharmaceutical companies' innovation, and the impact of alliance partner characteristics (Compatibility, Capabilities, and Commitment) on incremental innovation is more than the impact on radical innovation. Also the results showed that the complementarity of partner has the highest impact on the firm innovation, then the compatibility, then the commitment. Based on these findings the study recommending that the companies that seeking for innovation through a strategic alliances must select the appropriate partner who has a complementary capabilities that contribute non overlapping resources to the relationship, and a partner who has the unique competencies; and the partner who has a compatible strategic objectives, organization culture and management style; and the partner who has a strong sense of commitment for the alliance.

Understanding the Impact of Competitive Advantage and Core Competency on Regional Tourism Revitalization: Empirical Evidence in Taiwan

“…The 11-item competitive advantage scale was adapted from the scales developed by Macmillan and Tampo (2000) , and covers sensitivity and responsiveness. The 14-item partner selection scale was adapted from the scale developed by Abuzaid (2014) focusing on alliance partner characteristics, which covers compatibility, complementarity, and commitment. The six-item alliance performance scale was developed according to the studies by Mohr and Spekman (1994) , and covers satisfaction with the alliance, attainment of objectives, and satisfaction with achievements.…”

“…Researchers have identified a wide range of criteria and factors to ensure success in partner selection ( Moss Kanter, 1994 ; Hagen, 2002 ; Bierly and Gallagher, 2007 ; Shah and Swaminathan, 2008 ; Wu et al, 2009 ). These criteria and factors are verified as key determinants of the performance of a company or strategic alliance ( Abuzaid, 2014 ).…”

Heterogeneity, diversity and complementarity in alliance portfolios

“…In other studies, there is no clear separation between diversity and heterogeneity (Collins & Riley, 2013;Jiang et al, 2010). Various studies have linked complementarity to creating alliances with heterogeneous partners, which contribute to the minimization of the overlapping (Abuzaid, 2014;Chung et al, 2000;Duysters & Lokshin, 2011;Kale & Singh, 2009;Kim, 2014;Shan & Hamilton, 1991). Therefore, it is necessary to understand how each alliance portfolio divergence source (separately and combination with the others) affects firm performance.…”

“…Some studies such as those by Baum et al (2000), Lavie (2007), Burt (1992), Sakakibara (1997), Mitsuhashi and Greve (2009) and Wassmer (2007) indicate this tendency. Complementarity is therefore defined in opposition to partner overlapping and network redundancy and inefficacy (Abuzaid, 2014;Lin, 2012), caused by company homogeneity, which leads us to think that heterogeneity will generate further complementarity. Moreover, alliance portfolio diversity-or egonet diversityimplies multiple sources that will generate benefits from the created synergies (Duysters & Lokshin, 2011).…”

The Spatio-Temporal Evolution of China’s Hydrogen Fuel Cell Vehicle Innovation Network: Evidence From Patent Citation at Provincial Level

“…The citing and cited situations of patents are often used to reflect knowledge flow among innovators and detect who plays the leading role in the innovation network. From the perspective of social network analysis in the strategic emerging industry, the previous related literature has analyzed the structure of innovation network and its relationship with innovation performance (Ritter et al, 2004;Ahmad Abuzaid, 2014;Semrau and Werner, 2014). There is no research on current status of China's HFCV innovation activities by focusing on patent citation network, which characterizes technological innovation and knowledge flow, especially the spatial-temporal evolution of innovation activities across provinces.…”