Purpose: The purpose of this paper is to investigate alliance partner diversity (APD) as a driving force that potentially enhances firms’ innovation generation (IG) in interfirm open alliance contexts. The authors propose that APD enhances IG but that the effects depend on both alliance network position and the double-edged external knowledge search strategy. Building on the knowledge-based view and social capital theory, the authors formally model how external knowledge search strategies can lead to productive or destructive acquisitions of external knowledge in interfirm open alliance networks. The authors theorize that when an individual firm adopts a central position in a complex interfirm open alliance network, its propensity toward beneficial IG depends on its knowledge search strategy (i.e. its breadth and depth) due to the joint influence of network position and knowledge search strategy on innovation.Design/methodology/approach: Using an original large-scale survey of high-tech firms, this study shows that the relationship between partner diversity and IG is contingent on a firm’s network position and knowledge search strategy. The authors also offer an original analysis of how knowledge search strategy (i.e. its breadth and depth) in network centrality (NC) affects the efficacy of knowledge acquisition in interfirm open alliance networks. Empirically, the authors provide an original contribution to the open innovation literature by integrating social capital and knowledge-based theory to rigorously measure firm IG.Findings: Overall, our findings suggest that the knowledge search strategy imparts a double-edged effect that may promote or interfere with external knowledge in IG in the context of the diversity of alliance partners.Research limitations/implications: The work has important limitations, such as its analysis of a single industry in the empirical models. Therefore, further studies should consider multiple industries that may provide useful insights into innovation decisions.Practical implications: External knowledge search is valuable, particularly in the high-tech industry, as external knowledge acquisition generates innovation output. This study serves to raise managers’ awareness of various approaches to external knowledge searches and highlights the importance of network position in knowledge acquisition from interfirm open alliance collaborations.Originality/value: This paper is the first to investigate the double-edged effect of knowledge search on interfirm open alliance networks. It also contributes to the theoretical and practical literature on interfirm open alliance networks by reflecting on external knowledge search and underlying network centrality and APD factors.

Forest certification plays a notable role in promoting sustainability. This certification shows that forestland holders have adopted innovative practices toward realizing sustainable business models. Relatively little analysis has been devoted to identifying the efforts of transforming a conventional business model into a sustainable version through the application of forest certification. This paper examines the elements of a sustainable business model: value proposition, value creation and delivery, and value capture in certified forestland holders’ business operations. Empirical results have confirmed that certification signifies a successful sustainability transformation within adopting firms. However, these small organizations struggle with obtaining know-how regarding sustainable forest management. There needs to be adequate external support, such as government consultants or academic researchers, in order to successfully adopt third-party forest certification. However, while practicing sustainable forest management activities will not guarantee premium prices, the certification has, in some rare cases, helped to develop a new niche market. Good communication with stakeholders has improved firms’ relationships with local residents, but more channels of communication are still needed to activate green consumers.