Alliance Portfolio Diversity and Dominant Logic Theory


Portfolio Diversity
Dominant Logic Theory

How to Cite

Alliance Portfolio Diversity and Dominant Logic Theory. (2018). Journal of Business Strategies, 35(1), 31-47.


Alliance portfolio diversity has emerged as a topic of considerable research
interest. Two central questions remain: why are some firms are better at managing
alliance portfolio diversity than others, and does the form of alliance portfolio
diversity matter? I develop a framework using dominant logic theory to explore
these questions. I distinguish related alliance portfolio diversity from unrelated
alliance portfolio diversity, and argue that when a firm engages in related alliance
portfolio diversity strategy that matches its dominant logic(s), it will experience
greater performance. I expect that firms lacking a prominent dominant logic will
engage in unrelated alliance portfolio diversity. I also argue that if firms engage in
related alliance portfolio diversity in an area(s) that does not match its dominant
logic(s), there will be a mismatch, triggering a reduction in firm performance and the
development of a new dominant logic. Finally, I offer directions for future research.


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