Abstract

The aim of this study is to examine the impact of strategic alliance partner characteristics namely (partnercomplementarity, partner commitment, and partner compatibility) on firm’s innovation, which includesincremental innovation and radical innovation. The population of the study contained (13) JordanianPharmaceutical companies, and the sample unit consisted from (122) managers and head of divisions working instrategic alliances, marketing and production areas within the target companies. In order to gathering the datarequired for measuring the study variables a questionnaire was developed. The results of the study showed thatthe strategic alliance partner characteristics had a significant impact on the Jordanian pharmaceuticalcompanies’ innovation, and the impact of alliance partner characteristics (Compatibility, Capabilities, andCommitment) on incremental innovation is more than the impact on radical innovation. Also the results showedthat the complementarity of partner has the highest impact on the firm innovation, then the compatibility, thenthe commitment. Based on these findings the study recommending that the companies that seeking forinnovation through a strategic alliances must select the appropriate partner who has a complementarycapabilities that contribute non overlapping resources to the relationship, and a partner who has the uniquecompetencies; and the partner who has a compatible strategic objectives, organization culture and managementstyle; and the partner who has a strong sense of commitment for the alliance.

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