Facilitating exploration alliances in multiple dimensions: the influences of firm technological knowledge breadth

Whereas prior studies suggest that strategic alliances offer powerful tools for firms to explore business opportunities and alliances may explore in technology and organization dimensions, firms tend to compensate for exploration in one dimension by engaging in exploitation in the other dimension. The question of how firms can explore at a higher level in multiple dimensions of alliances remains unanswered. This study proposes that a firm's broad technological knowledge base may help facilitate exploration alliances in multiple dimensions. Data from the biopharmaceutical industry reveal that not only does a broad technological knowledge base support exploration in the technology and organization dimensions individually, but it also relaxes the firm's resource constraints; thus, the firm is less likely to compensate for exploration in one dimension with exploitation in the other. Instead, it can explore at a higher level in both dimensions simultaneously. This insight is particularly important in light of the increasing research interest in the fundamental enablers of and barriers to exploring new technological opportunities.