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Strategic Management Journal Vol. 34 No. 5 2013

Balancing your technology‐sourcing portfolio: How sourcing mode diversity enhances innovative performance

Vareska van de Vrande

Rotterdam School of Management Erasmus University Rotterdam The Netherlands

Abstract

With external innovation becoming more and more important, many firms struggle with the question of how to balance their technology‐sourcing portfolio. This study addresses this issue by looking at the effects of portfolio diversity on performance outcomes and the conditions under which diversity is most likely to materialize. Using a dataset of strategic investments by pharmaceutical firms, the results show that the variance in relative technological proximity between the focal firm and its partners exhibits an inverted U‐shaped relationship with innovative performance and that this relationship is affected by the diversity of the external sourcing modes used in the portfolio.

DOI
10.1002/smj.2031
Volume
34
Issue
5
Pages
610-621
Language
en
Sources
openalex bibtex:phds-export.bib crossref

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