The Configurational Logic of Alliance Networks for Innovation: A Machine Learning-Enabled Investigation

Alliance network embeddedness provides firms with access to external knowledge and resources, yet its innovation implications vary across firms and network contexts. This study examines how network structure and combinations of embedding characteristics are associated with corporate innovation performance. Based on 335 firm-level observations from Chinese listed biopharmaceutical manufacturing firms, the study first identifies heterogeneous alliance network environments through community detection and K-Means clustering. Four network types are identified: dyadic, ringlike, star, and complex alliances. Classification and regression trees (CART) are then employed to extract interpretable, threshold-based decision rules linking network embedding characteristics to high and non-high innovation performance. The results show that no single network characteristic is consistently associated with innovation performance across alliance types. In dyadic alliances, moderate cooperation intensity is associated with high innovation performance, whereas ringlike alliances exhibit conditional associations involving cooperation intensity and partner centrality. Star alliances are characterized by configurations involving cooperation breadth and network position, while complex alliances exhibit more multidimensional combinations of structural and relational conditions. The findings indicate that the innovation relevance of alliance network embeddedness is network-type-specific and configuration-dependent. As a complementary robustness analysis, fuzzy-set qualitative comparative analysis broadly supports several core configurational patterns identified by CART, while also revealing alternative configurations, particularly in complex alliances. The study demonstrates that understanding alliance network embeddedness requires attention to network context, empirical thresholds, and combinations of network characteristics rather than isolated network attributes.