The effect of explicit and tacit synergies on alliances radical innovation: The moderating roles of interfirm technological diversity and environmental technological dynamism

Hao, Bin; Ye, Jiangfeng; Feng, Yanan; Cai, Ziming

Abstract

This study draws on theories of organizational inertia and relational view to examine how the pursuit of partnership synergy influences radical innovation in different technological contexts. We differentiate between two types of synergy: explicit synergy, defined as the potential to exchange interfirm operational elements to renew processes or capabilities, and tacit synergy, conceptualized as the potential to synthesize cross-boundary resources to develop new perspectives or thinking modes. We find that both explicit and tacit synergy have positive impacts on radical innovation, and such impacts are contingent on interfirm technological diversity and environmental technological dynamism in opposing ways. Specifically, environmental technological dynamism positively moderates the relationship between explicit synergy and radical innovation but not the relationship between tacit synergy and radical innovation. In contrast, interfirm technological divers ity positively moderates the relationship between tacit synergy and radical innovation but not the relationship between explicit synergy and radical innovation. Our study sheds new light on the generation of radical innovation in alliances. It also provides practitioners with useful guidelines for crafting synergy strategies that will facilitate the pursuit of radical innovation.

Citation

Hao, B., Ye, J., Feng, Y., & Cai, Z. (2020). The effect of explicit and tacit synergies on alliances radical innovation: The moderating roles of interfirm technological diversity and environmental technological dynamism. R&D Management, 50(4), 432-446. https://doi.org/10.1111/radm.12390

• Journal Article Type: Article
• Acceptance Date: Sep 16, 2019
• Online Publication Date: Oct 10, 2019
• Publication Date: 2020-09
• Deposit Date: Oct 2, 2019
• Publicly Available Date: Nov 5, 2019
• Journal: R&D Management
• Print ISSN: 0033-6807
• Electronic ISSN: 1467-9310
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 50
• Issue: 4
• Pages: 432-446
• DOI: https://doi.org/10.1111/radm.12390
• Keywords: synergy; radical innovation; alliance; technological diversity; technological dynamism
• Public URL: https://nottingham-repository.worktribe.com/output/2734477
• Publisher URL: https://onlinelibrary.wiley.com/doi/full/10.1111/radm.12390