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The influence of marketing and innovation investments on alliance type choice

Matthew Sarkees (Department of Marketing, St. Joseph's University, Philadelphia, Pennsylvania, United States.)
Ryan Luchs (Department of Marketing, Duquesne University, Pittsburgh, Pennsylvania, United States.)

Journal of Business & Industrial Marketing

ISSN: 0885-8624

Article publication date: 1 June 2015




The purpose of this paper is to explore the gap in the literature as well as investigate how the combination of internal marketing or innovation investments with new product introductions influences alliance type choices. Most research on marketing–innovation resource allocation decisions has focused on trade-offs in internal investments such as advertising versus research and development. Absent from this discussion is whether firms offset a weakness internally by reaching outside the boundaries of the firm through alliances. As a result, managers lack a clear understanding of the potential for complementarity using internal–external approaches to a market.


This paper draws on the resource-based view of the firm, using a longitudinal secondary data set and a choice model.


The authors find that firms that internally emphasize either marketing or innovation maintain the same approach externally with respect to alliance type choices. Thus, efforts to complement internal marketing (innovation) resource investments with innovation (marketing) alliances are not seen. However, the interaction of new product introductions with internal resource investments does result in a complementary firm approach.


The authors bridge a gap in the resource investment literature by exploring how the internal decisions impact the external alliance choices. The authors draw on longitudinal data and show that the action of making the choice is important, as it impacts future resource decisions. The authors explore the interaction between new production introductions and internal firm investments on alliance type choice. Given that new product introductions are a key to longer-term firm success, examining these relationships enhances the managerial impact.



Sarkees, M. and Luchs, R. (2015), "The influence of marketing and innovation investments on alliance type choice", Journal of Business & Industrial Marketing, Vol. 30 No. 5, pp. 626-636.



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