COMPLEMENTORS’ TIE STRENGTH AND FIRMS’ INNOVATION AND PERFORMANCE

Fatma A. Mohamed, Morehead State University, Morehead, Kentucky, U.S.A.
Ahmad M. Hassan, Morehead State University, Morehead, Kentucky, U.S.A.

Published in

REVIEW OF BUSINESS RESEARCH
Volume 18, Issue 2, p25-34, October 2018

ABSTRACT

This study attempted to illuminate the influence of tie strength between complementors in strategic alliances on firms’ innovation and performance using the embeddedness perspective. The Embeddedness perspective emphasizes the importance of the social relationships upon which the firm can draw in its strategic behavior and performance. In this article we present a theoretical framework for understanding firm performance and innovation in terms of its tie strength with their complementor(s) through four propositions: First, there is a positive relationship between a firm’s tie strength with its complementors and innovation; second, there is a positive relationship between a firm’s innovation and its performance; third, there is a positive relationship between the strength of a firm’s ties with complementors and their performance; and fourth, innovation partially mediates the relationship between tie strength and performance.

Keywords

Strategic alliance; complementor; network theory


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