Do technology alliances benefit technological diversification? The effects of technological knowledge distance, network centrality and complementary assets

This study suggests that decisions regarding the scope of a technology base can be traced tofactors (technological knowledge (TK) distance, network centrality and complementaryassets) that govern the extent of technological specialization and diversification. Based ondata from 2000–2007, for 248 electronics and information technology firms in Taiwan, weindicate that technology alliances do not encourage firms to diversify a technology baseover time. Decisions in regards to the utilization of external TK can also be traced to TKdistance, network centrality and complementary assets. First, TK distance has an inverted Ushapedrelationship with the technology base scope. Second, the mere consideration ofnetwork centrality and TK distance cannot determine the technology base scope. Third, afirm converges its technology base through combined complementary assets with TKdistance and network centrality.