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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

Authors

Bin Hao

Jiangfeng Ye

Yanan Feng

Ziming Cai



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.

Journal Article Type Article
Publication Date Oct 10, 2019
Journal R&D Management
Print ISSN 0033-6807
Electronic ISSN 1467-9310
Publisher Wiley
Peer Reviewed Peer Reviewed
APA6 Citation Hao, B., Ye, J., Feng, Y., & Cai, Z. (2019). 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, https://doi.org/10.1111/radm.12390
DOI https://doi.org/10.1111/radm.12390
Keywords synergy; radical innovation; alliance; technological diversity; technological dynamism
Publisher URL https://onlinelibrary.wiley.com/doi/full/10.1111/radm.12390

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