We investigate how the size of the geographic cluster in which a firm is located influences its governance choice between equity and non-equity alliances and subsequent innovation performance. We argue that firms located in larger clusters tend to form non-equity alliances rather than equity alliances because the communication and control benefits of cluster membership, which increase with cluster size, reduce in-cluster firms' need to form equity alliances. We also claim that the effect of this preferential use of non-equity alliances on innovation becomes stronger when firms are located in larger clusters. Our arguments are supported by a panel analysis of alliances formed by US-listed semiconductor firms.
|Number of pages||14|
|Journal||Managerial and Decision Economics|
|Publication status||Published - 2023 Jan|
Bibliographical notePublisher Copyright:
© 2022 John Wiley & Sons Ltd.
All Science Journal Classification (ASJC) codes
- Business and International Management
- Strategy and Management
- Management Science and Operations Research
- Management of Technology and Innovation