Knowing thy neighbour: creating and capturing value from a firm's alliance experiences

Intellectual assets, especially its relational forms, have become increasingly important to explain a firm's innovation. To examine relational forms of intellectual assets (IA), this study theoretically and empirically advances a concept of alliance management capability (AMC) to explain the value creation and capture aspects of a firm's innovation process. The concepts of value-creating alliance experiences (VCAE) and value capturing alliance experiences (VCPAE) were introduced in which a firm's ability to learn from these alliance experiences increases the firm's ability to discover and govern partnerships that bring the firm's innovations to market. Hypotheses were developed and empirically examined in the biotechnology industry. A contribution of this study is that a firm's VCAE and VCPAE introduce a greater 'openness' to a firm's innovation process. This openness enables a firm to better adapt and respond to the opportunities of the market and thus impact a firm's competitive advantage to innovate.