Leveraging firm innovation performance through alliance portfolios in emerging economies: the role of absorptive capacity

Abstract

Firms are increasingly engaging in alliance portfolios/networks – AP/Nets - to leverage their innovation performance –IP - and thus boost their competitiveness. Most studies, with a few exceptions especially from emerging countries, found a positive relationship between AP/Net and IP, depending on portfolio characteristics and firm absorptive capacity – AC.  This article undertakes an empirical investigation of the AP/Net – IP relationship and AC´s potentially moderating role in this relationship in an emerging country: Brazil. Statistical testing of hypotheses regarding these relationships, and AC´s role, corroborated the exceptions. However, it confirmed how important it is that firms in an emerging country ensure a high level of AC to mitigate the negative effects of AP/Net diversity on IP. Some managerial and policy implications were also formulated.