A behavioral theory of alliance portfolio reconfiguration: Evidence from pharmaceutical biotechnology

Research Summary Extant research suggests that firms rationally evaluate external and/or internal contingencies when deciding how to reconfigure their alliance portfolios. We advance a behavioral perspective which assumes that managers are boundedly rational and thus rely on behavioral heuristics when making alliance portfolio reconfiguration decisions. In panel data on U.S.‐listed biotechnology firms, we find that below‐aspiration performance...