Alliance Portfolio Diversity and Dominant Logic Theory


Portfolio Diversity
Dominant Logic Theory

How to Cite

Penney, C. (2018). Alliance Portfolio Diversity and Dominant Logic Theory. 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.