Project Structure in Interorganizational Collaboration: Evidence from Biotechnology R&D in South Korea

This study explores how external network decentralization and internal network diversity influence innovation performance through external knowledge sourcing in biotechnology firms' collaborative projects. While previous research has emphasized the efficiency of centralized R&D collaborations, this study highlights the adaptive advantage of decentralized structures in temporary, time-bounded projects. Decentralized networks enhance absorptive capacity by enabling parallel information processing across participating organizations, while diverse partner configurations—linking firms, universities, and research institutes—broaden technological exploration through complementary knowledge. Yet, when external knowledge sourcing exceeds a project’s processing capacity, the benefits of diversity diminish due to cognitive overload and coordination complexity. Drawing on empirical data from 12,562 biotechnology R&D projects, the findings confirm that innovation in temporary organizations depends on structural design and knowledge inflow alignment. The study extends temporary organization theory by embedding network mechanisms into time-bounded collaboration and advancing a network-based model of absorptive capacity. Practically, firms and policymakers should foster decentralized yet coordinated collaborations that convert openness into faster, more integrated innovation, while ensuring that knowledge inflows remain manageable within the project’s limited processing capacity.