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This book extends Rumelt s (1974) definition of relatedness in two ways. First, it argues that similarity and complementarity are two independent forms of relatedness which must both be evaluated. Second, it argues that Rumelt s third dimension should be partitioned because science and technology are two different forms of knowledge which influence firm innovation, and subsequently performance, differently but interactively. It is advanced that the interplay between science and technology relatedness affects the types of innovations produced. The insights from this theory are extended to collaborative R&D.

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MARIANNA MAKRI received her Ph.D. in Business Administration from Arizona State University and currently works at the University of Miami. Her work has appeared in top tier management publications such as the Academy of Management Journal and Strategic Management Journal. Also, she has contributed to several books on executive pay.

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