The dynamics of partner and knowledge portfolios in alternative energy field

This study uses the patent applications of alternative energy organizations, including companies, universities and research institutions, to explain the dynamic evolutions of organizational resource portfolios. We study organizational resource portfolios from two dimensions: internal knowledge portfolio and external partner portfolio, and we capture the dynamic evolutions of two portfolios through the emergence of new partners and the growth of knowledge elements, and explain these from a diversity perspective. We propose inverted-U shaped relationships between diversities (collaborative and knowledge) and organizational portfolio dynamics (new partners and knowledge elements). Analyzing alternative energy patents from 3601 organizations during the time period 2000-2012, we find that organizations having too high or low collaborative diversity have less novel knowledge elements and new collaborative relationships than those having moderate collaborative diversity. We also suggest that knowledge diversity contributes to two types of portfolio dynamics. However, the positive effects of knowledge diversity on evolutions of partner and knowledge portfolios diminish, and even become negative and detrimental beyond certain levels of knowledge diversity. Our findings have theoretical implications for dynamic evolutions of organizational portfolios and diversity literature, and are also useful for firms' managers striving to develop valuable collaborative partners and pursuing novel innovations.