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Why members stay in or leave an R&D consortium: performance and conditions of membership as determinants of continuity

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  • Paul Olk
  • Candace Young

Abstract

This paper jointly examines performance and conditions surrounding membership as determinants of the decision to stay or leave an R&D consortium. Hypotheses were developed for performance and, by drawing from power dependence and transaction cost theories, for conditions surrounding membership. Analysis of survey questionnaire data from 184 member organizations of U.S.‐based R&D consortia indicates that performance and the conditions of knowledge‐related involvement, network ties, learning, and alternatives are related to the decision to stay in or leave. These results provide limited support for power dependence but are more consistent with transaction cost theory. Subsequent analyses revealed an interaction between performance and membership conditions, suggesting performance leads to the conditions of membership, and that the continuity decision for a poorly performing consortium differs from that for one performing well. © 1997 John Wiley & Sons, Ltd.

Suggested Citation

  • Paul Olk & Candace Young, 1997. "Why members stay in or leave an R&D consortium: performance and conditions of membership as determinants of continuity," Strategic Management Journal, Wiley Blackwell, vol. 18(11), pages 855-877, December.
    • Handle: RePEc:bla:stratm:v:18:y:1997:i:11:p:855-877
    DOI: 10.1002/(SICI)1097-0266(199712)18:113.0.CO;2-Q
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    1. Kolloge, Konstantin, 2009. "Die Messung des Kooperationserfolges in der empirischen Forschung: Ergebnisse einer Literaturstudie," Arbeitspapiere 76, University of Münster, Institute for Cooperatives.
    2. Silviya Draganinska & Rudiger Wink, 2006. "Formal Knowledge Examination Institutions: Chance Or Threat to European Medium Tech-Nology SMEs? A Cognitive and Institutional Perspective," ERSA conference papers ersa06p404, European Regional Science Association.
    3. Yi-Ju Lo & Tung M. Hung, 2017. "Is a powerful rival a right partner?," Review of Managerial Science, Springer, vol. 11(3), pages 661-690, July.
    4. Xia, Mu & Zhao, Kexin & Mahoney, Joseph T., 2008. "Enhancing Value via Cooperation: Firms' Process Benefits from Participation in a Consortium," Working Papers 08-0109, University of Illinois at Urbana-Champaign, College of Business.
    5. Shih-Chieh Fang & Dan-Wei Wen, 2018. "Untangle Multi-Organizational Collaboration From Value Co-creation," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 9(5), pages 76-87, September.
    6. Lucy Sojung Lee & Weiguo Zhong, 2020. "Responses to alliance partners’ misbehavior and firm performance in China: the moderating roles of Guanxi orientation," Asian Business & Management, Palgrave Macmillan, vol. 19(3), pages 344-378, July.
    7. Samaddar, Subhashish & Kadiyala, Savitha S., 2006. "An analysis of interorganizational resource sharing decisions in collaborative knowledge creation," European Journal of Operational Research, Elsevier, vol. 170(1), pages 192-210, April.
    8. Junichi Yamanoi & Qing Cao, 2014. "Competition and termination of the alliances between asymmetric partners: The case of Japanese department stores," Asia Pacific Journal of Management, Springer, vol. 31(4), pages 949-971, December.
    9. Zylbersztajn, Decio & Lazzarini, Sergio G., 2005. "On the survival of contracts: assessing the stability of technology licensing agreements in the Brazilian seed industry," Journal of Economic Behavior & Organization, Elsevier, vol. 56(1), pages 103-120, January.
    10. Hans Berends & Elco van Burg & Erik M. van Raaij, 2011. "Contacts and Contracts: Cross-Level Network Dynamics in the Development of an Aircraft Material," Organization Science, INFORMS, vol. 22(4), pages 940-960, August.
    11. Alfonso Vargas Sánchez & Elia García Martí, 2003. "La medición del desempeño de las sociedades cooperativas agrarias. Perspectiva de los directores-gerentes de las provincias de Huelva y Jaén," CIRIEC-España, revista de economía pública, social y cooperativa, CIRIEC-España, issue 46, pages 85-116, November.
    12. Carole Donada & Caroline Mothe & Gwenaëlle Nogatchewsky & Gisele Campos Ribeiro, 2019. "The Respective Effects of Virtues and Inter-organizational Management Control Systems on Relationship Quality and Performance: Virtues Win," Journal of Business Ethics, Springer, vol. 154(1), pages 211-228, January.
    13. Gisele de Campos Ribeiro & Carole Donada & Caroline Mothe & Gwenaëlle Nogatchewsky, 2019. "The Respective Effects of Virtues and Inter-Organizational Management Control Systems on Relationship Quality and Performance: Virtues Win," Post-Print hal-01700970, HAL.
    14. Mora-Valentin, Eva M. & Montoro-Sanchez, Angeles & Guerras-Martin, Luis A., 2004. "Determining factors in the success of R&D cooperative agreements between firms and research organizations," Research Policy, Elsevier, vol. 33(1), pages 17-40, January.
    15. Gerges-Yammine, Rand & Ter Wal, Anne L.J., 2023. "Firm exit from open multiparty alliances: The role of social influence, uncertainty, and interfirm imitation in collective technology development," Research Policy, Elsevier, vol. 52(4).
    16. Sullivan, Ursula Y. & Coughlan, Anne T., 2004. "Alliance Structure and Success in the Global Airline Industry: An Empirical Investigation," Working Papers 04-0113, University of Illinois at Urbana-Champaign, College of Business.
    17. Rivera-Santos, Miguel & Rufín, Carlos, 2010. "Global village vs. small town: Understanding networks at the Base of the Pyramid," International Business Review, Elsevier, vol. 19(2), pages 126-139, April.
    18. Sanjay Dhir & Sushil, 2017. "Flexibility in Modification and Termination of Cross-Border Joint Ventures," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(2), pages 139-151, June.
    19. Henrich R. Greve & Hitoshi Mitsuhashi & Joel A. C. Baum, 2013. "Greener Pastures: Outside Options and Strategic Alliance Withdrawal," Organization Science, INFORMS, vol. 24(1), pages 79-98, February.
    20. Xiaoli Yin & Jianfeng Wu & Wenpin Tsai, 2012. "When Unconnected Others Connect: Does Degree of Brokerage Persist After the Formation of a Multipartner Alliance?," Organization Science, INFORMS, vol. 23(6), pages 1682-1699, December.
    21. Fabio Fonti & Massimo Maoret & Robert Whitbred, 2017. "Free-riding in multi-party alliances: The role of perceived alliance effectiveness and peers' collaboration in a research consortium," Strategic Management Journal, Wiley Blackwell, vol. 38(2), pages 363-383, February.

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