Alliance portfolios, or a firm collection of simultaneous alliances, have become
common phenomena particularly in technology industries. These portfolios have been
found to have a significant impact on firms’ financial performance. At the same time,
there is little consensus regarding the direction of this effect. Findings have shown
positive, negative, curvilinear, and non-significant relationships. In this dissertation, I
employed an organizational learning perspective to investigate the effect of alliance
portfolio size on firm financial performance. Using a sample of 343 firm-year
observations in the U.S. software industry, I explored portfolio- and firm-level
characteristics as moderators of this relationship. Findings provide evidence for a
curvilinear, inverted U-shaped relationship between portfolio size and firm performance
that is moderated by the timing of the alliances within the portfolio and by the firms’ Top
Management Team (TMT) turnover.