Abstract
This study investigates how diversity of alliance portfolio resources and firm’s characteristics influence firm performance. Although firms are expected to benefit from increasing diversity of alliance portfolio resources, the performance effects could vary with types of diversity of alliance portfolio resources. Further, performance effects may depend on a focal firm’s characteristics. By analyzing a sample of US semiconductor firms, we show that diversity of alliance functions positively affects firm’s market performance, while high diversity of technological and positional resources has a negative effect on firm performance. However, this negative effect depends on a focal firm’s market experience.