Vertical alliances for collaborative new product development in interfirm relationship have been an ongoing theme of strategy and marketing research to cope with fast changing environments, and to continuously innovate in the marketplace. However, no study has yet examind both direct and indirect effects of vertical alliances on new product performance under high technology turbulence. As alliance partners seek to enhance their collaboration and performance, the relational nature of business relationships and structural network positions can influence firm innovativeness and subsequent new product performance. Using survey data of 146 firms collected in Turkey, this study shows that while firms form stronger cooperation under conditions of high technology turbulence, the impact on firm innovativeness and new product performance is contingent upon network positions and information exchange. The findings indicate that indirect effects of vertical alliance portfolio and information exchange enhance new product performance through firm innovativeness. Vertical relationship structures facilitate firm innovativeness with enhanced exploration but may not have a positive direct effect on new product performance. Furthermore, the effect of information exchange on new product performance is contingent upon information exchange which enhances firm innovativeness.

• Teck-Yong Eng(University of Southampton)
• Sena Ozdemir(University of Essex)
• Destan Kandemir(Bilkent University)