earticle

영어

Based on an event study approach, we investigate the economic and strategic value of open innovation alliances (OIAs), in which collaborators and competitors join together in the pursuit of the co-development of technological innovations. Unlike previous event studies in the IS field, this study not only assesses the wealth impact on the OIA-participating focal firm but also on the firm’s rivals. To gain additional insights into the factors that moderate the market valuation of OIA participation, several contextual factors, including the degree of partner heterogeneity, innovation type, and the degree of openness of the OIAs are used to account for variability in abnormal
returns. We found that allying firms realize significant positive abnormal returns when their entry into an OIA is made public. The results also suggest that substantial excessive returns accrued to the allying firms with the belated entry of a large, established firm. A firm’s entry into an OIA increases, rather than decreases, the market valuation of its rival. Innovation type and openness were significantly associated with the amount of abnormal returns accruing to allying firms, while no significance was found for partner heterogeneity.