This paper aims to investigate how firm-level factor entrepreneurial orientation affects alliance outcomes, and how two sources of uncertainty – competitive intensity and the dependence of an entrepreneurially oriented firm on its partner – moderate the relationship between entrepreneurial orientation and alliance performance.
The hypotheses are tested using survey data from 196 R&D alliances in China.
The results indicate that the relationship between entrepreneurial orientation and alliance performance has an inverted U shape and is negatively moderated by competitive intensity and the entrepreneurial orientation firm’s dependence on its partner.
Entrepreneurial orientation can have positive and negative effects on alliance performance. Particularly in contexts of intense competition or dependence on partners, firms with an entrepreneurial orientation must fully exploit the advantage this brings them, improve their self-control and alliance-coordination capabilities and emphasize the joint effects of technological innovation and market factors on new product development in case of alliance failure.
This study highlights the dual role of entrepreneurial orientation in R&D alliances. By incorporating external and internal sources of uncertainty (competitive intensity and dependence on the partner), it also offers a more comprehensive understanding of how different levels of entrepreneurial orientation affect R&D alliance performance.
