Don't get caught on the wrong foot: A resource-based perspective on imitation threats in innovation partnerships

Foege J N, Piening E P, Salge T-O

Abstract
Innovation partnerships can be a double-edged sword. While they are important vehicles for learning and value creation, such partnerships also increase a firm’s vulnerability to unintended knowledge leakage and imitation by others. In this study, we go beyond previous research by studying the imitation threats induced by innovation partnership portfolios rather than individual alliances. Drawing on the resource-based view, we develop and test a model that links salient structural attributes of partnership portfolios and distinct forms of imitation. Results from our analysis of 803 German manufacturing firms support our prediction that a firm’s probability of being imitated increases with the partnership variety of its portfolio. We also find that firms can mitigate this threat by carefully selecting innovation partners and using appropriation mechanisms.

Keywords
Imitation; innovation partnership; partnership portfolios; open innovation; resource-based view