Search results

1 – 10 of 202
Article
Publication date: 1 April 2003

Marta M. Vidal Suárez and Esteban García‐Canal

In this paper we analyze the influence of transaction costs on the stock market reaction to global alliance formation. In particular, we analyze to what extent the stock market…

366

Abstract

In this paper we analyze the influence of transaction costs on the stock market reaction to global alliance formation. In particular, we analyze to what extent the stock market reacts negatively to the presence of attributes that increase motivation or coordination costs. We adopt a relational framework, analyzing the direct impact of these attributes not only on transaction costs but also on the potential synergies of the alliance and the incentives to invest in the relationship. Our results show that the stock market reacts negatively to transaction costs only in connection with free riding hazards.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 1 no. 1
Type: Research Article
ISSN: 1536-5433

Keywords

Article
Publication date: 18 September 2017

Wenhong Zhang, Yapu Zhao, Longwei Tian and Dong Liu

The purpose of this paper is to explore how boundary-spanning demand-side search (BSDSS) fuels radical technological innovations as well as how innovation appropriability

Abstract

Purpose

The purpose of this paper is to explore how boundary-spanning demand-side search (BSDSS) fuels radical technological innovations as well as how innovation appropriability moderates this relationship. In particular, based on Teece’s (1986) argument regarding the appropriability of innovation, the authors divide factors to influence innovation appropriability into two types: external institution related and internal capability related.

Design/methodology/approach

This study employs a survey methodology. Specifically, the authors collected a sample composed of 150 high-tech manufacturing Chinese firms.

Findings

Results show that BSDSS has a positive effect on radical technological innovations. Further, the authors find that dysfunctional competition and political ties negatively moderate the main effect, whereas firms’ legal and IPRs protection capabilities positively moderate the main effect.

Research limitations/implications

One major limitation is that the findings are based on data derived from Chinese firms, which may limit the generalization of the findings.

Practical implications

The findings suggest that firms competing Chinese market, both Chinese and foreign firms, should actively leverage BSDSS to boost radical technological innovations. Chinese firms should pay attention to the negative roles of appropriability hazards originating from external institutional environment. Foreign firms in Chinese market should be cautious on potential dysfunctional competition from local competitors, such as imitation and intelligence property violation, and enhance appropriability through building internal capabilities, such as legal and IPRs capabilities.

Originality/value

The study highlights the crucial roles of BSDSS in radical technological innovations, as well as the moderating roles of innovation appropriability. These results provide new insights into the drivers of radical technological innovations.

Details

Management Decision, vol. 55 no. 8
Type: Research Article
ISSN: 0025-1747

Keywords

Book part
Publication date: 22 September 2009

Joanne E. Oxley

A key argument in transaction cost economics (TCE) is that transactions are aligned with governance structures so as to effect a discriminating – mainly transaction cost…

Abstract

A key argument in transaction cost economics (TCE) is that transactions are aligned with governance structures so as to effect a discriminating – mainly transaction cost economizing – match (Williamson, 1991). The archetypical problem in TCE is the vertical integration or “make-versus-buy” decision, and the focus of transaction cost economizing in this context is on mitigation of “holdup” problems associated with investments in specific assets (Klein, Crawford, & Alchian, 1978; Williamson, 1985). However, this asset specificity condition in only one example (albeit a significant one) of a more general class of contractual hazards. Indeed, in his most recent discussion of the TCE agenda, Williamson (1996, p. 3) suggests that “identification, explication, and mitigation of contractual hazards – which take many forms, many of which long went unremarked – are central to the exercise.”

Details

Economic Institutions of Strategy
Type: Book
ISBN: 978-1-84855-487-0

Article
Publication date: 15 May 2017

Dan Zhang, Shengxiao Li and Dengpan Zheng

The purpose of this paper is to examine how knowledge search (KS) affects open innovation performance (OIP) in consideration of appropriability hazard in an emerging market…

1178

Abstract

Purpose

The purpose of this paper is to examine how knowledge search (KS) affects open innovation performance (OIP) in consideration of appropriability hazard in an emerging market context.

Design/methodology/approach

The authors identify two types of appropriability hazard related to KS activities in the improvement of OIP: partner-related and market-related hazards, and construct a model of KS to the OIP with the government-enterprise relationship and market focus (MF) as moderating factors of the analysis framework, using the hierarchical regression analysis based on a survey sample of 258 Chinese companies.

Findings

The authors find that KS has a stronger positive relationship with OIP in international market-focused enterprises compared with domestic market-focused enterprises. In addition, using a configuration approach, the authors find that KS is more positively related to OIP when enterprises have an international MF and a good relationship with the government, but less in other MF government and enterprises relationship configurations.

Originality/value

This paper contributes to previous research work by identifying two types of appropriability hazard related to KS activities in emerging market countries: partner-related and market-related hazards. The authors argue that a positive relationship between KS and OIP is more likely to occur if these appropriability hazards can be mitigated by export MF and a good relationship with the government which has not been demonstrated in previous research.

Book part
Publication date: 27 April 2004

Suzanne E. Majewski and Dean V. Williamson

There is a tension between the literatures on incomplete contracting and transactions cost economics regarding the importance of ex post governance and the extent to which formal…

Abstract

There is a tension between the literatures on incomplete contracting and transactions cost economics regarding the importance of ex post governance and the extent to which formal theories of incomplete contracting capture salient aspects of exchange relations. In this paper, we empirically examine how firms structure joint R&D agreements to illuminate how contracts can be incomplete and how governance can matter. We employ a dataset of 96 contracts to construct a taxonomy of the types of mechanisms firms use in organizing collaborative R&D, and indicate how groups of mechanisms line up with various types of contracting hazards. The results suggest that the allocation of property rights over innovations at the time of contracting between R&D partners is an important aspect of contract design. But they also suggest that weak property rights admit scope for other dimensions of contract. In particular, the research indicates that while knowledge spillovers may give rise to appropriability hazards, efforts to contain or channel knowledge spillovers may enable joint venture members to strategically block other members’ follow-on commercialization or research. Firms design joint R&D governance mechanisms to balance spillover hazards and strategic blocking.

Details

Intellectual Property and Entrepreneurship
Type: Book
ISBN: 978-1-84950-265-8

Article
Publication date: 9 May 2016

Jesper Nydam Wulff

The purpose of this paper is to systematically assess the empirical support for central relationships in the empirical literature on foreign market entry mode. The reviewing…

1901

Abstract

Purpose

The purpose of this paper is to systematically assess the empirical support for central relationships in the empirical literature on foreign market entry mode. The reviewing method overcomes methodological limitations in past reviews.

Design/methodology/approach

This review provides a systematic assessment of empirical support through a simple quantitative procedure using transparent criteria for article selection. In total, 1,217 statistical tests from 119 studies published in 44 different scientific journals in the period 1997-2013 are examined across a range of dimensions.

Findings

Findings question the frequent use of commonly used measures (e.g. advertising intensity) and control variables (e.g. firm size) and suggest that statements about the importance of mode choice for subsidiary performance may be premature. Methodologically, this study identifies critical issues with regard to interpretation of interactions and the entry mode choice set.

Research limitations/implications

This study limits itself to study the direction of relationships and does not analyze effect sizes. Further, future research may benefit from broadening the entry mode choice by extending the use of multiple outcome models as well as implementing the correct interpretational tools when investigating interactions.

Originality/value

The review is relevant to researchers seeking an overview over the research literature or practitioners interested in the link between mode choice and subsidiary performance.

Details

European Journal of Marketing, vol. 50 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

Book part
Publication date: 10 June 2009

Kyle J. Mayer

Transaction cost economics (TCE) has received extensive attention from a variety of disciplines, but it holds a particularly central place in strategic management. The focal…

Abstract

Transaction cost economics (TCE) has received extensive attention from a variety of disciplines, but it holds a particularly central place in strategic management. The focal issues examined by TCE, vertical integration and interfirm governance (including contract design), are important determinants of firm performance – the central issue in the field of strategy. While several extensive reviews of empirical work in TCE have been undertaken, one key issue has received relatively little attention – construct validity in TCE empirical research. The purpose of this chapter is to highlight some of the challenges of operationalizing key transaction cost predictions and provide some ideas for better measuring core constructs such as asset specificity, uncertainty, and frequency.

Details

Research Methodology in Strategy and Management
Type: Book
ISBN: 978-1-84855-159-6

Book part
Publication date: 22 September 2009

Joanne E. Oxley

This chapter provides a retrospective analysis of Oxley (1997), placing the article in context, highlighting its main contributions, describing its impact on the strategy…

Abstract

This chapter provides a retrospective analysis of Oxley (1997), placing the article in context, highlighting its main contributions, describing its impact on the strategy literature, and critiquing the research from the viewpoint of today. Recent advances in the analysis of alliance governance are surveyed, and opportunities for future research are suggested.

Details

Economic Institutions of Strategy
Type: Book
ISBN: 978-1-84855-487-0

Book part
Publication date: 26 August 2014

Hans T. W. Frankort

Firms tend to transfer more knowledge in technology joint ventures compared to contractual technology agreements. Using insights from new institutional economics, this chapter…

Abstract

Firms tend to transfer more knowledge in technology joint ventures compared to contractual technology agreements. Using insights from new institutional economics, this chapter explores to what extent the alliance governance association with interfirm knowledge transfer is sensitive to an evolving industry norm of collaboration connected to the logic of open innovation. The chapter examines 1,888 dyad-year observations on firms engaged in technology alliances in the U.S. information technology industry during 1980–1999. Using fixed effects linear models, it analyzes longitudinal changes in the alliance governance association with interfirm knowledge transfer, and how such changes vary in magnitude across bilateral versus multipartner alliances, and across computers, telecommunications equipment, software, and microelectronics subsectors. Increases in industry-level alliance activity during 1980–1999 improved the knowledge transfer performance of contractual technology agreements relative to more hierarchical equity joint ventures. This effect was concentrated in bilateral rather than multipartner alliances, and in the software and microelectronics rather than computers and telecommunications equipment subsectors. Therefore, an evolving industry norm of collaboration may sometimes make more arms-length governance of a technology alliance a credible substitute for equity ownership, which can reduce the costs of interfirm R&D. Overall, the chapter shows that the performance of material practices that constitute innovation ecosystems, such as interfirm technology alliances, may differ over time subject to prevailing institutional norms of open innovation. This finding generates novel implications for the literatures on alliances, open innovation, and innovation ecosystems.

Article
Publication date: 27 April 2010

Federica Rossi

The aim of this article is to contribute to the debate on university‐industry knowledge transfer and on the changing organization of knowledge creation activities.

2739

Abstract

Purpose

The aim of this article is to contribute to the debate on university‐industry knowledge transfer and on the changing organization of knowledge creation activities.

Design/methodology/approach

By integrating several strands of analysis, a conceptual framework is developed that associates several properties of knowledge and of the institutional context in which university‐industry relationships take place, to the knowledge transfer governance forms that are most likely to be adopted. The framework is shown to be in accordance with results from the empirical literature, and is validated using an original dataset.

Findings

The data analysis confirms that the choice of university‐industry knowledge transfer governance forms on the part of organizations involved in knowledge production and dissemination projects is related to the key dimensions in the conceptual framework.

Originality/value

The conceptual framework developed in this article allows the incentives that drive the choice of specific governance forms for university‐industry interactions to be explained, as well as the processes and rationales that underpin the changing nature of university‐industry relationships to be explained.

Details

European Journal of Innovation Management, vol. 13 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

1 – 10 of 202