How do internal capabilities and external partnerships affect innovativeness?

Yu Shan Su, Eric W.K. Tsang, Mike W. Peng

Research output: Contribution to journalArticle

113 Citations (Scopus)

Abstract

How do a firm's internal capabilities and external partnerships contribute to its product and process innovativeness? How do their impacts differ? Based on the theoretical framework of exploitation and exploration, we develop an integrative model linking the impact of both internal capabilities and external partnerships on product and process innovativeness. Survey responses from Taiwanese biotechnology firms indicate that research and development (R&D), marketing, and manufacturing capabilities have different effects on product and process innovativeness. Of the four types of external partnerships, only partnerships with universities and research institutes seem to add value, whereas partnerships with suppliers, customers, and competitors do not contribute to innovativeness. Moreover, marketing capability and customer partnerships have a positive interaction effect on product innovativeness, while manufacturing capability and supplier partnerships have a positive interaction effect on process innovativeness.

Original languageEnglish
Pages (from-to)309-331
Number of pages23
JournalAsia Pacific Journal of Management
Volume26
Issue number2
DOIs
Publication statusPublished - 2009 Jun 1

    Fingerprint

Keywords

  • Biotechnology industry
  • External partnership
  • Internal capability
  • Process innovation
  • Product innovation

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management

Cite this