The Relationship Between Partner Diversity Of Alliance Portfolio And Firm Performance

As the league is playing an increasingly important role in the enterprise cooperation strategy, alliance enterprises has also widely spread and develop. But traditionally scholars' research has focused on alliance portfolio structure properties and the change of relationships, the characteristics of alliance partners is lacking in attention. Recently some research has begun to consider the characteristics of partners, particularly in diversity. This article research has focused on what is the specific influence about the diversity of alliance portfolio partner impacting on the company's performance. This research mainly according to the literature review and analysis of relevant theory, dividing alliance partner diversity into three indicators: industry diversity, national diversity and function diversity. This paper argues that properly increasing in industry, national and functional diversity of partners, will provide enterprises with more abundant resources and knowledge. At the same time building the balanced alliance portfolio diversity can provide convenience for enterprises to carry out exploration, development and other activities, and increase enterprise's competitive advantage. But excessively raising the level of the alliance portfolio partner diversity, will make the enterprise pay extra coordination cost and increase the difficulty and complexity.So according to the resource dependence theory and organizational learning theory, and based on the analysis about present situation of Chinese medicine industry and puts forward three hypotheses: The relationship between industrial diversity and focal firm performance is significant inverted U-shaped; the relationship between national diversity and focal firm performance is significant inverted U-shaped; the relationship between function diversity and focal firm performance is significant inverted U-shaped. First this paper retrieve and filtrate data on the pharmaceutical industry listed companies' website and securities trading platform, determine that using 106 pharmaceutical companies as the sample data. Respectively settle 2008-2012 and 2009-2013 cumulative five years about 106 listed companies of Chinese medicine industry alliance portfolio information, use Simpson formula (D = 1 -?Pi2) which is measure the biodiversity to calculate the 106 companies data in the industry diversity, national diversity and function diversity.Second collect 106 focal firms of an average net profit margin of three years(2008-2012 and 2013-2015 )as sample data of firm performance. By clear up panel data of China's pharmaceutical industry 106 listed companies, use Eviews software to calculate descriptive analysis and regression analysis of generalized least squares method which is under random effects. Respectively explore and analyze the relationship between alliance portfolio partners' three diversity indices and focal firm performance, and validate three assumptions.The results show that the partner industry diversity is significant and industry diversity has a inverted U-shaped relationship with firm performance thereby providing support for Hypothesis 1; National industry diversity is significant and the relationship between national diversity and firm performance is inverted U-shaped, then support the Hypothesis 2; Functional diversity is significant but functional diversity has a U-shaped relationship with firm performance, does not conform to the Hypothesis 3. Therefore this paper suggested that alliance portfolio should be promoted to the height of the strategic management by firms,contemporary enterprises should discriminatively and efficiently use alliance portfolio diversity. By collaborating with partners from different industries, countries and functions to build alliances and to achieve the maximization of resource utilization and efficiency, at the same time constantly use a set of complete balance of strategy to optimize management method and make the governance costs and risk minimize.