How to gain from international R&D alliances? A mutual dependence logic

In an asymmetric international R&D alliance, a central research question is: how and when emerging market firms (EMFs) can acquire knowledge and foster their domestic innovation? To address this key question, we build on resource dependence theory (RDT) and particularly its core construct of mutual dependence (MD), and develop an MD model of R&D alliances (MD model or logic). Following the MD logic, we contend that MD is positively related to both mature and emerging technology knowledge acquisition of EMFs, which in turn enhances EMFs in their domestic innovation capability. In addition, we contend that organizational similarity and informal competition moderates the positive relationship between mutual dependence and knowledge acquisition and the relationship between emerging technology knowledge acquisition and radical product innovation of EMFs, respectively. Based on a detailed dataset of 225 Chinese firms, we verify our MD model, contributing to the literature of R&D alliances and innovation in distinct ways. Most importantly, our proposed MD model may stimulate future scholars to more carefully consider the role of knowledge acquisition underlying the motivations and actions of EMFs in the dyadic relationship.