Influence of strategic alliances on product diversification: evidence from the US corporations

During the last two decades, corporations have been combining resources through strategic alliances in record numbers. A firm’s previous alliances may help the firm to create new products based on existing skills and resources. This research analyzes the effects of strategic alliances on the degree of product diversification by using a sample from the S&P 500. This study found that a firm’s strategic alliances have a positive impact on product diversification. In addition, this study found that both exploration and equity-based alliances have a positive impact on a firm’s product diversification levels. This work also found that specific learning effects from exploration and equity-based alliances are strong when firms require technology and knowledge transfers. KCI Citation Count: 0