Capability evolution and governance in alliance portfolios: Evidence from an emergent industry

Gurneeta Vasudeva, Exequiel Hernandez

Research output: Contribution to conferencePaperpeer-review

1 Scopus citations

Abstract

We study how the evolution of alliance portfolio capabilities is affected by the choice of governance mode. We argue that, in new technological domains, portfolio capability diversity'the partners' mix of skills'follows a path of initial increase centered on exploratory learning, followed by a decrease focused on exploitative learning. Importantly, the rate at which capability diversity peaks depends upon the dominant mode of alliance governance. The greater asset specificity and interdependence in strongly governed alliances constrain the scope of external capabilities available to the firm and accelerate partner-specific learning, leading to an earlier peak in capability diversity than in portfolios with weakly governed alliances. These ideas are supported in our analysis of 760 alliance portfolios from the fuel cell industry, suggesting that governance choices can lead to heterogeneity in firm capabilities.

Original languageEnglish (US)
StatePublished - Dec 1 2010
Event70th Annual Meeting of the Academy of Management - Dare to Care: Passion and Compassion in Management Practice and Research, AOM 2010 - Montreal, QC, Canada
Duration: Aug 6 2010Aug 10 2010

Other

Other70th Annual Meeting of the Academy of Management - Dare to Care: Passion and Compassion in Management Practice and Research, AOM 2010
Country/TerritoryCanada
CityMontreal, QC
Period8/6/108/10/10

Keywords

  • Alliance portfolio
  • Capability evolution
  • Governance

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