Academic journal article Management Review : An International Journal

Marriage between Strategic Alliances, Collaboration and Innovation: A Hedonistic View from Biotechnology Industry

Academic journal article Management Review : An International Journal

Marriage between Strategic Alliances, Collaboration and Innovation: A Hedonistic View from Biotechnology Industry

Article excerpt


This research is a replicative study involving Strategic Alliances, Innovation, collaboration and Biotechnology from a firm level setting with application of evaluation tools like Balanced Scorecard. A conceptual model is referred to in here from relevant academic literatures involving Trust, Alliance Governance (Leadership) Strategic Intent (direction), Organization culture, Knowledge sharing and Internal Business process which enhances alliance satisfaction and increases performance. This performance can be measured by metrics like scorecard and an attempt has been made to do that. This study aims to provide a theoretical background for a broader research theme in the elements proposed in the conceptual model and paves the way for further examination by application of various qualitative and quantitative measurements.

Keywords: Strategic Alliances, Innovation, Biotechnology, Conceptual Model, Balanced Scorecard, Theoretical Background.


The knowledge economy has undergone a sea change in modern world with the winds of innovation blowing from all directions had swept away the archaic processes and yielded ways for firms to radically transfer them into focal point for innovation. Firms in the technological arena competing in the new era of knowledge economy had felt the need to access to superior ideas continuously, with access to knowhow and information to be sustainable in the market space (Bierley and Chakrabarti, 1996). As frontiers crumble, no firm can individually access all the information in the marketplace making collaborations essential in the form of alliances with domestic and international firms, government research laboratories and universities (Arora and Gambardella, 1990; Powell et al., 1990). One of the approaches adopted by the firms in knowledge economy is to monitor development of knowledge externally and leveraging it for gainful purposes, is to engage in Strategic Alliances. Strategic Alliances are a quicker source to gain access to superior technology in the form of knowledge repositories patents copyrights etc. Research has corroborated this fact, that alliances are an important source of scientific and technological knowledge (Mowery et al., 1996; Powel et al., 1996; Ahuja, 2000) and contributes to firm success. Empirical research also suggested firms learn from each other than formal alliances and individual employees also play a big role in diffusing /dissemination of knowledge as suggested by research conducted on localized knowledge spillovers (Saxenian, 1994; Porter, 2000). Also the internet with its far reaching network has facilitated the dissemination of knowledge to a great extent between individuals. Here a discussion is ensued in order to form a routine for guiding future research on individual level collaborations on strategic alliances and the impact it plays on innovation. This individual level of knowledge exchange is of permanent importance in alliance scenario, through contribution made to the knowledge intensive industries like software, research and development laboratories, academia etc. The focus of the individual as a conduit for inter firm knowledge flows is also evident from the work on mobile engineers and innovation in semiconductors (Almeida and Kogut, 1999).

Stages in the formation of Strategic Alliances

In reviewing the literature on developmental stages of Strategic Alliances (Das and Teng, 2002) concluded that all models of strategic alliances contained: A Formation Stage, in which the partners are identified, negotiations are carried out, and the alliance's strategy is formulated and set up. An Operation Stage, in which the partners start to operate the alliance and implement the agreements. An Outcome Stage, in which the alliance either becomes mature and stabilizes or continues to change and reform.

Primary Purpose of an Alliance:

a) Cooption - In this process potential competitors are converted into allies and providers of complementary goods and services that allow new businesses to develop. …

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