Morehead State University

The Impact of a Firms’ Strategic Alliance on its Innovation on Software Industry

Institution

Morehead State University

Abstract

A firm is embedded in networks of relationships that often provide resources beyond those available from internal sources alone. The most important of a firm’s network of relationships are termed strategic alliances. A firm entry into strategic alliances is about leveraging the value of its internal resources with the external resources of its partners. From this relationship a firm may draw upon the resources those alliances generate to introduce new technologies or products to the market. To assess the effects of a firm’s strategic alliances on firm innovation in high tech industries, using a sample of 49 firms in software industry, this study propose that there is a positive relationship between firms’ strategic alliance and its innovation.

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The Impact of a Firms’ Strategic Alliance on its Innovation on Software Industry

A firm is embedded in networks of relationships that often provide resources beyond those available from internal sources alone. The most important of a firm’s network of relationships are termed strategic alliances. A firm entry into strategic alliances is about leveraging the value of its internal resources with the external resources of its partners. From this relationship a firm may draw upon the resources those alliances generate to introduce new technologies or products to the market. To assess the effects of a firm’s strategic alliances on firm innovation in high tech industries, using a sample of 49 firms in software industry, this study propose that there is a positive relationship between firms’ strategic alliance and its innovation.