IIMB Management Review

Journal of Indian Institute of Management Bangalore

Role of Search for Domain Knowledge and Architectural knowledge in alliance formation

Sai Yayavaram, Manish Srivastava and MB Sarkar
Journal Name
Strategic Management Journal
Journal Publication
Financial Times 50
others
Publication Year
2018
Journal Publications Functional Area
Strategy
Publication Date
Vol. 39, Issue 8, August 2018, Pg. 2277-2302
Abstract

The literature on technological alliances emphasizes that search for knowledge drives alliance formation. However, in conceptualizing technological knowledge, prior work on alliances has not made a distinction between domain knowledge—knowledge that firms possess in distinct technological domains—and architectural knowledge—knowledge that firms possess about how to combine elements from different technological domains. We argue that firms seek partners that are similar in domain knowledge to deepen their knowledge, and partners that are dissimilar in architectural knowledge to broaden their knowledge. Our results indicate that the likelihood of alliance formation increases when two firms are similar in domain knowledge and dissimilar in architectural knowledge. Further, our results show that these effects are positively moderated by the degree of decomposability of a firm's knowledge base.

Role of Search for Domain Knowledge and Architectural knowledge in alliance formation

Author(s) Name: Sai Yayavaram, Manish Srivastava and MB Sarkar
Journal Name: Strategic Management Journal
Volume: Vol. 39, Issue 8, August 2018, Pg. 2277-2302
Year of Publication: 2018
Abstract:

The literature on technological alliances emphasizes that search for knowledge drives alliance formation. However, in conceptualizing technological knowledge, prior work on alliances has not made a distinction between domain knowledge—knowledge that firms possess in distinct technological domains—and architectural knowledge—knowledge that firms possess about how to combine elements from different technological domains. We argue that firms seek partners that are similar in domain knowledge to deepen their knowledge, and partners that are dissimilar in architectural knowledge to broaden their knowledge. Our results indicate that the likelihood of alliance formation increases when two firms are similar in domain knowledge and dissimilar in architectural knowledge. Further, our results show that these effects are positively moderated by the degree of decomposability of a firm's knowledge base.