The Role of Internal and Network Constraints on Alliance Ambidexterity Decisions in Technology Intensive Industries

Previous studies on strategic alliance formation have largely overlooked the effects that organizations' routine development can have on the relationship between organizations' network position and their alliance ambidexterity strategy. This study extends ambidexterity research by adding internal and network perspectives and examining their cumulative effects on alliance ambidexterity. We first acknowledge the interplay between organizations' internal knowledge exploration/exploitation strategies and organizations' alliance ambidexterity and determine that organizations with a high level of internal knowledge breadth are more likely to make focused alliance decisions. Second, our analysis of 145 US-based information technology organizations with an active alliance behavior reveals that having well-formed routines as a result of previous collaborations strengthens the tendency of brokerage organizations to follow alliances that focus on either exploration or exploitation. Although most alliance studies have commonly argued in favor of an ambidextrous approach, this study provides critical evidence that both internal knowledge exploration/exploitation strategies and development of routines constrain organizations' alliance formation decisions, guiding them towards a more focused approach.