Influence of Firm and Partner Resources on Firm Performance in the Alliance Portfolio

Abstract

Although a firm benefits from the resource endowment of the partners in its alliance portfolio, research has so far concentrated on partners. This study proposes that mutual conditions of network resources between a firm and its partners – the compatibility of underlying resources, including physical and R&D resources, strategy, status, and the complementarity of technology – have a positive relationship to the firm’s economic performance in its alliance portfolio. By analyzing alliances within the global semiconductor industry, this study shows that a firm’s economic performance increases when the compatibility and complementarity of network resources are high.