Does functional diversity in interfirm collaborations lead to innovation diversity? Firm-level evidence from the Australian food industry*

Journal article


Azeem, Muhammad Masood, Fazal-e-Hasan, Syed, Gutiérrez, Leopoldo and Baker, Derek. (2022). Does functional diversity in interfirm collaborations lead to innovation diversity? Firm-level evidence from the Australian food industry*. The Australian Journal of Agricultural and Resource Economics. 66(3), pp. 612-637. https://doi.org/10.1111/1467-8489.12482
AuthorsAzeem, Muhammad Masood, Fazal-e-Hasan, Syed, Gutiérrez, Leopoldo and Baker, Derek
Abstract

Research on the collaboration–innovation nexus emphasises that collaborations and innovation are multidimensional. Despite this emphasis, there is limited evidence on how firms' collaborative diversity affects their innovation diversity. This paper addresses this gap by examining the relationships between (i) a firm's functional diversity of collaboration (FDC) and innovation diversity, and (ii) innovation diversity and firm growth. We used longitudinal data from 738 Australian food firms, and our findings suggest that the positive relationship between FDC and innovation diversity reaches a point of saturation, beyond which additional collaboration negatively influences firms' innovation diversity. Moreover, innovation diversity depends on the motives behind alliance formation and the firm's focus on innovation. Finally, the association between innovation diversity and growth performance is heterogeneous across firms' conditional growth rate distribution.

KeywordsAustralia; B2B collaborations; financial performance; innovation; panel data; poisson model
Year2022
JournalThe Australian Journal of Agricultural and Resource Economics
Journal citation66 (3), pp. 612-637
PublisherJohn Wiley & Sons, Inc.
ISSN1364-985X
Digital Object Identifier (DOI)https://doi.org/10.1111/1467-8489.12482
Scopus EID2-s2.0-85131298714
Page range612-637
Publisher's version
License
All rights reserved
File Access Level
Controlled
Output statusPublished
Publication dates
Online06 Jun 2022
Publication process dates
Deposited09 Jun 2023
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