Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • Article
  • Journal of Organization Design

Extending the Role of Headquarters Beyond the Firm Boundary: Entrepreneurial Alliance Innovation

By: Jaeho Kim and Andy Wu
  • Format:Print
ShareBar

Abstract

Prior research on corporate headquarters (CHQ) characteristics identifies the impact of CHQ location and composition on the innovation outcomes of internal subsidiaries. However, given that external strategic alliances with high-tech entrepreneurial firms represent a key source of innovation for the corporation, corporations must also consider how their choices of CHQ location and composition affect the innovation outcomes of these partners. In a study of 36 incumbent pharmaceutical corporations in 377 strategic alliances with 143 VC-backed biotechnology startups, we leverage detailed hand-collected data on CHQ locations and functions to estimate the effect of the CHQ on the innovation performance of the corporations’ entrepreneurial alliance partners. We find that a 1000-km decrease in CHQ–partner distance leads to an increase of 28 forward citations for the alliance partner, i.e., a 1% decrease in the distance is associated with a 1.7% increase in innovation performance. We find that the co-located presence of the corporation’s R&D function at the CHQ attenuates the benefit of CHQ–partner proximity, particularly for alliances structured for horizontal collaboration at the same part of the value chain. This study contributes to the literatures on both CHQ design and technology alliances.

Keywords

Alliance; Innovation; Corporate Headquarters; Geographic Proximity; Entrepreneurship; Corporate Strategy; Alliances; Joint Ventures; Innovation and Invention; Business Headquarters; Geographic Location

Citation

Kim, Jaeho, and Andy Wu. "Extending the Role of Headquarters Beyond the Firm Boundary: Entrepreneurial Alliance Innovation." Art. 15. Special Issue on Corporate Headquarters. Journal of Organization Design 8 (2019): 1–35.
  • Read Now

About The Author

Andy Wu

Strategy
→More Publications

More from the Authors

    • January 2023
    • Faculty Research

    Network Effects in Technology

    By: Andy Wu and Matt Higgins
    • November 2022
    • Faculty Research

    HTC and Virtual Reality (B)

    By: Andy Wu and Matt Higgins
    • September 2022
    • Faculty Research

    Applied Intuition: Powering Autonomy at Scale

    By: Andy Wu and Matt Higgins
More from the Authors
  • Network Effects in Technology By: Andy Wu and Matt Higgins
  • HTC and Virtual Reality (B) By: Andy Wu and Matt Higgins
  • Applied Intuition: Powering Autonomy at Scale By: Andy Wu and Matt Higgins
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College