The acquisition and utilization of information in new product alliances are examined. Drawing from research in social network theory with a focus on the strength-of-ties literature, it is suggested that horizontal alliances have lower levels of relational embeddedness and higher levels of knowledge redundancy than vertical alliances. It is then suggested that though embeddedness enhances both the acquisition and utilization of information in alliances, redundancy diminishes information acquisition but enhances information utilization. These ideas are tested using a sample of 106 US firms that recently have participated in new product alliance.

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