Knowledge assimilation in R&D alliance: The effectiveness of firms´ internal and external capabilities

This paper applies organizational learning and network theory to understand the contingencies of the relationship between technological diversity and firm performance in R&D alliance. It focuses on two aspects of organizational capabilities (learning speed and network centrality of the firm) as potential enhancements to the firm´s financial performance. To carry out these empirical examinations, we constructed a data set comprising the alliance and patenting activities of firms in various U.S. industries. This study points out the disadvantage of a high level of technological diversity among alliance firms. It also explores the internal and external capabilities of firms, as measured by learning speed and network centrality, and the positive effects of these capabilities on firm performance. The study´s implications and future research directions are discussed.