How do contextual factors affect a firm's R&D alliance performance? A study of biotech industry

Since prior research suggests that the technological diversity between R&D partners provides firms vehicles to learn partners' embedded knowledge and then enhance their organizational outcomes. Although the literature of technological diversity between R&D partners has long been accumulating, its performance implication has yet been conclusive, particularly overlooking the focal firm's learning strategy and experience which are critical to focal firm's learning from its partners. This study employs event study to extend the technological diversity-performance relationship to contingency perspectives. The results reveal that the announcing firm's exploration strategy and knowledge stock can soften the negative effect of technological diversity on market response.