International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Performance Impact Mechanism of Alliance Portfolio Diversity: Mediated by Product Market Power
Xinhua Hu

Due to cost and complexity increase brought by diversity, the impact of alliance portfolio diversity on firm performance is uncertain. Extant studies only focus on the direct relationship between the two, which makes the impact mechanism of alliance portfolio diversity unclear, and difficult to enhance value of alliance portfolio diversity. We focus on the performance impact of alliance portfolio functional diversity and investigates whether product market power plays the mediating role between them. Based on the panel data of 278 GEMlisted companies in China, we find that there is the negative relationship between the alliance portfolio resource diversity and firm performance, while product market power plays a mediating role between them. The study complements the exploration of the impact mechanism between alliance portfolio diversity and firm performance, and provides useful thinking for firms to fully explore the potential value of the alliance portfolio resource diversity in the practice.

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