Evaluating the role of governance structure in enhancing technological innovation efficiency in strategic alliances

This study examines how alliance governance structure affects firms’ technological innovation efficiency. Technological innovation efficiency is measured using a stochastic frontier approach that captures how effectively firms transform innovation inputs into outputs. Using a sample of 377 Chinese listed firms engaged in strategic alliances from 2009 to 2019, the results suggest that firms participating in equity alliances exhibit significantly higher technological innovation efficiency than those involved in non-equity alliances. Within equity alliances, joint ventures are associated with lower technological innovation efficiency than equity participation alliances. Mediation analyses suggest that the association between equity alliances and technological innovation efficiency operates partly through greater intangible assets accumulation, lower financing constraints, and stronger executive incentives. Additional analyses indicate that these associations are more pronounced in repeated alliances and weaker in discontinued alliances, highlighting the role of alliance continuity in realizing governance-related efficiency gains. The findings suggest that alliance governance is relevant not only to whether firms innovate but also to how efficiently they convert collaborative resources into technological outcomes.