How to become more innovative from alliance portfolios

This study examines how a business unit’s alliance portfolio diversity, relation-specific investments and a shared alliance vision across an alliance portfolio contribute to innovation, and how an alliance portfolio management capability does influence these relationships. Based on a self-completion questionnaire administered to managers of business units operating in designated Dutch ‘top industries’, who were responsible for the management of the business unit’s alliances, this study’s findings confirmed that alliance portfolio diversity shows an inverted U-shaped relationship. Relation-specific invests showed a negative result and having a shared alliance vision across an alliance portfolio positively contributes to a business unit’s level of innovation. Based on these results, this study illustrates how managers of business units, who are responsible for the management of its alliances, may create a competitive advantage by adjusting their alliance portfolio strategy in terms of diversity, relation-specific investments, and creating a shared alliance vision across their alliance portfolio.