Technological Exploration and Market Exploitation in Interfirm Alliances

This paper empirically examines the dichotomous contribution for innovation, for technological exploration and market exploitation, from alliances. Using a sample from US economy-wide alliances of US Public companies and employing cross-tabulation of various classifications of alliances and parent firms, the related phenomena are investigated. Results show that alliances are predominantly undertaken by technology-intensive companies and their frequency has a direct association with the parental technological intensity. However, technological explorative purposes do not dominate in the complete sample of alliances. Many firms, whether technologically intensive or not, enter into alliances also for market exploitative purposes. This contingent phenomenon shows that alliances offer a very important additional role that is not all technology centered, but that is also deeply market centered