Technological diversification, technological coupling and invention performance

Purpose To investigate the relationship between technological diversification and firm performance as a function of varying levels of technological coupling and internal technological change. Design/methodology/approach A longitudinal study of US-based bio-pharmaceutical companies. Findings Technological diversification improves invention performance. However, high levels of technological coupling reduce this effect. Practical implications Firms with highly diversified technological portfolios should strive to keep their technologies at low levels of technological coupling. Originality/value This is the first study to show that technological coupling reduces the positive effect of technological diversification on firms' invention performance.