Intermediaries, indirect local ties, and innovation output: evidence from an interfirm R&D alliance network during the emergence of the biopharmaceutical industry
Year: 2026
Type: article
Abstract: This study explores the impact of indirect local ties on firms’ innovation output, focusing on the role of intermediaries connecting firms to their indirect partners in an interfirm R&D alliance network. Our findings reveal a positive relationship between indirect local ties and innovation output. Moreover, this study introduces a comparative approach to examine two alliance governance mechanisms, relative governance strength and relative trust. Relative governance strength as a formal governance mechanism, through equity-based vs. non-equity structures, strengthens the positive impact of indirect local ties on firms’ innovation output. Yet, relative trust as an informal, trust-based governance mechanism, through repeated vs. non-repeated partnerships, does not exhibit a significant moderating effect. These insights enhance our understanding of how firms can navigate intermediaries’ self-interested behaviour to optimise innovation output, offering practical implications for strategic alliance management in knowledge-intensive industries.
Source: Industry and Innovation
Authors: Ning Wang, John Hagedoorn
Institutions: Shanghai Polytechnic University, University of London
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7172247137