Sourcing portfolio diversity in new product development: Antecedents and performance implications

•This paper develops the Sourcing Portfolio Diversity construct and examines its antecedents and impact on firm performance.•Data on clinical trials was used to test sourcing portfolio of new product development in the bio-pharmaceutical industry.•Our empirical findings confirm our claim that greater sourcing portfolio diversity enhances firms’ performance.•We find that diversity of technological applications and product pipeline are related to diversity in sourcing portfolios.