R&D ALLIANCES AND INNOVATION IMPACT

Drawing from research on organizational learning, we examine innovation impact by analyzing R&D alliances and science orientation in an industry network boundary. We empirically evaluate the moderating role of science orientation in the relationship between R&D alliances and innovation impact. Our study of the global chemical pharmaceutical industry found that R&D alliances of a firm enhance the impact of innovation and the relationship was reinforced when the firm shows higher levels of science orientation. This result supports the notion that the impact of innovation is strengthened by combining the external R&D partnership with ‘explorative’ science orientation.