Advanced Search
MyIDEAS: Login to save this article or follow this journal

External technology sourcing: The effect of uncertainty on governance mode choice

Contents:

Author Info

  • van de Vrande, Vareska
  • Vanhaverbeke, Wim
  • Duysters, Geert

Abstract

External knowledge sourcing is increasingly important for corporate entrepreneurship. In this study, we examine the effect of external and relational uncertainty on the governance choice for inter-organizational technology sourcing. We develop a number of hypotheses about the impact of environmental turbulence, technological newness, technological distance and prior cooperation on the choice between different governance modes. Data about external technology sourcing transactions in the pharmaceutical industry do not provide evidence for a continuum from less to more integrated sourcing modes. However, we find that the ranking depends on the type of uncertainty, indicating that firms tackle different types of uncertainty with different governance modes.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6VDH-4RWHX9N-1/2/aef691c092f14a0c37fabec48aaae9a8
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of Business Venturing.

Volume (Year): 24 (2009)
Issue (Month): 1 (January)
Pages: 62-80

as in new window
Handle: RePEc:eee:jbvent:v:24:y:2009:i:1:p:62-80

Contact details of provider:
Web page: http://www.elsevier.com/locate/jbusvent

Related research

Keywords: External technology sourcing Governance modes Real options theory Transaction cost theory External and relational uncertainty;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Ozgen, Eren & Baron, Robert A., 2007. "Social sources of information in opportunity recognition: Effects of mentors, industry networks, and professional forums," Journal of Business Venturing, Elsevier, Elsevier, vol. 22(2), pages 174-192, March.
  2. Jarillo, J. Carlos, 1989. "Entrepreneurship and growth: the strategic use of external resources," Journal of Business Venturing, Elsevier, Elsevier, vol. 4(2), pages 133-147, March.
  3. John Hagedoorn, 2002. "External Sources of Innovative Capabilities: The Preferences for Strategic Alliances or Mergers and Acquisitions," Journal of Management Studies, Wiley Blackwell, Wiley Blackwell, vol. 39(2), pages 167-188, 03.
  4. Dushnitsky, Gary & Lenox, Michael J., 2005. "When do incumbents learn from entrepreneurial ventures?: Corporate venture capital and investing firm innovation rates," Research Policy, Elsevier, Elsevier, vol. 34(5), pages 615-639, June.
  5. Siegel, Robin & Siegel, Eric & MacMillan, Ian C., 1988. "Corporate venture capitalists: Autonomy, obstacles, and performance," Journal of Business Venturing, Elsevier, Elsevier, vol. 3(3), pages 233-247.
  6. Bart Nooteboom, 2004. "Governance and competence: how can they be combined?," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 28(4), pages 505-525, July.
  7. Balakrishnan, Srinivasan & Koza, Mitchell P., 1993. "Information asymmetry, adverse selection and joint-ventures : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 20(1), pages 99-117, January.
  8. Garette, Bernard & Dussauge, Pierre, 2000. "Alliances versus acquisitions: choosing the right option," European Management Journal, Elsevier, Elsevier, vol. 18(1), pages 63-69, February.
  9. Jonathan P. O'Brien & Timothy B. Folta & Douglas R. Johnson, 2003. "A real options perspective on entrepreneurial entry in the face of uncertainty," Managerial and Decision Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 24(8), pages 515-533.
  10. Bruce Kogut, 1991. "Joint Ventures and the Option to Expand and Acquire," Management Science, INFORMS, INFORMS, vol. 37(1), pages 19-33, January.
  11. Reuer, Jeffrey J. & Arino, Africa & Mellewigt, Thomas, 2006. "Entrepreneurial alliances as contractual forms," Journal of Business Venturing, Elsevier, Elsevier, vol. 21(3), pages 306-325, May.
  12. Allen, Stephen A. & Hevert, Kathleen T., 2007. "Venture capital investing by information technology companies: Did it pay?," Journal of Business Venturing, Elsevier, Elsevier, vol. 22(2), pages 262-282, March.
  13. Sykes, Hollister B., 1990. "Corporate venture capital: Strategies for success," Journal of Business Venturing, Elsevier, Elsevier, vol. 5(1), pages 37-47, January.
  14. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, American Economic Association, vol. 76(5), pages 984-1001, December.
  15. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, Econometric Society, vol. 52(5), pages 1219-40, September.
  16. Zahra, Shaker A., 1991. "Predictors and financial outcomes of corporate entrepreneurship: An exploratory study," Journal of Business Venturing, Elsevier, Elsevier, vol. 6(4), pages 259-285, July.
  17. Rothaermel, Frank T. & Deeds, David L., 2006. "Alliance type, alliance experience and alliance management capability in high-technology ventures," Journal of Business Venturing, Elsevier, Elsevier, vol. 21(4), pages 429-460, July.
  18. Patel, Pari & Pavitt, Keith, 1997. "The technological competencies of the world's largest firms: Complex and path-dependent, but not much variety," Research Policy, Elsevier, Elsevier, vol. 26(2), pages 141-156, May.
  19. Tsai, Kuen-Hung & Wang, Jiann-Chyuan, 2008. "External technology acquisition and firm performance: A longitudinal study," Journal of Business Venturing, Elsevier, Elsevier, vol. 23(1), pages 91-112, January.
  20. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, National Bureau of Economic Research, Inc, in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
  21. Winters, Terry E. & Murfin, Donald L., 1988. "Venture capital investing for corporate development objectives," Journal of Business Venturing, Elsevier, Elsevier, vol. 3(3), pages 207-222.
  22. Nielsen, Bo Bernhard, 2000. "Synergies In Strategic Alliances: Motivation And Outcomes Of Complementary And Synergistic Knowledge Networks," Working Papers, Copenhagen Business School, Department of International Economics and Management 4-2000, Copenhagen Business School, Department of International Economics and Management.
  23. Soh, Pek-Hooi, 2003. "The role of networking alliances in information acquisition and its implications for new product performance," Journal of Business Venturing, Elsevier, Elsevier, vol. 18(6), pages 727-744, November.
  24. Jones, Gary K. & LanctotJR., Aldor & Teegen, Hildy J., 2001. "Determinants and performance impacts of external technology acquisition," Journal of Business Venturing, Elsevier, Elsevier, vol. 16(3), pages 255-283, May.
  25. George, Gerard & Zahra, Shaker A. & Wood, D. Jr., 2002. "The effects of business-university alliances on innovative output and financial performance: a study of publicly traded biotechnology companies," Journal of Business Venturing, Elsevier, Elsevier, vol. 17(6), pages 577-609, October.
  26. Dushnitsky, Gary & Lenox, Michael J., 2006. "When does corporate venture capital investment create firm value?," Journal of Business Venturing, Elsevier, Elsevier, vol. 21(6), pages 753-772, November.
  27. John Cantwell & Massimo Colombo, 2000. "Technological and Output Complementarities, and Inter-Firm Cooperation in Information Technology Ventures," Journal of Management and Governance, Springer, Springer, vol. 4(1), pages 117-147, March.
  28. John Hagedoorn, 1999. "The Transition from Strategic Technology Alliances to Mergers and Acquisitions: An Exploratory Study," Journal of Management Studies, Wiley Blackwell, Wiley Blackwell, vol. 36(1), pages 87-107, 01.
  29. Sahal, Devendra, 1985. "Technological guideposts and innovation avenues," Research Policy, Elsevier, Elsevier, vol. 14(2), pages 61-82, April.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Van de Vrande, Vareska & Vanhaverbeke, Wim & Duysters, Geert, 2009. "Additivity and complementarity in external technology sourcing: The added value of corporate venture capital investments," MPRA Paper 26419, University Library of Munich, Germany, revised 2010.
  2. Lopez, Henry & Vanhaverbeke, Wim, 2009. "How innovation intermediaries are shaping the technology market? An analysis of their business model," MPRA Paper 20458, University Library of Munich, Germany, revised 2010.
  3. Felin, Teppo & Zenger, Todd R., 2014. "Closed or open innovation? Problem solving and the governance choice," Research Policy, Elsevier, Elsevier, vol. 43(5), pages 914-925.
  4. Mazzola, Erica & Perrone, Giovanni, 2013. "A strategic needs perspective on operations outsourcing and other inter-firm relationships," International Journal of Production Economics, Elsevier, Elsevier, vol. 144(1), pages 256-267.
  5. Bodas Freitas , Isabel Maria & Geuna, Aldo & Lawson, Cornelia & Rossi, Federica, 2014. "How Industry Inventors Collaborate with Academic Researchers: The choice between shared and unilateral governance forms," Department of Economics and Statistics Cognetti de Martiis. Working Papers, University of Turin 201402, University of Turin.
  6. Vanhaverbeke, Wim & Li, Ying & Van de Vrande, Vareska, 2009. "The dual role of external corporate venturing in technological exploration," MPRA Paper 26488, University Library of Munich, Germany, revised 2010.
  7. Szalavetz, Andrea, 2009. "Feltörekvő transznacionális társaságok - a kínai példa a klasszikus elmélet tükrében
    [Ambitious transnational corporations - the example of China in the light of classical theory]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1125-1137.
  8. De Beule, Filip & Elia, Stefano & Piscitello, Lucia, 2014. "Entry and access to competencies abroad: Emerging market firms versus advanced market firms," Journal of International Management, Elsevier, Elsevier, vol. 20(2), pages 137-152.
  9. Lo Nigro, Giovanna & Perrone, Giovanni & Chiapparrone, Silvia, 2012. "Governance forms drivers in bio-pharmaceutical inter-firm relationships," International Journal of Production Economics, Elsevier, Elsevier, vol. 140(2), pages 604-613.
  10. Romaric Servajean-Hilst, 2013. "Stage of development, governance and performance of inter-firm innovation cooperation: a conceptual model and propositions," Post-Print, HAL hal-00805560, HAL.
  11. Podoynitsyna, Ksenia & Song, Michael & van der Bij, Hans & Weggeman, Mathieu, 2013. "Improving new technology venture performance under direct and indirect network externality conditions," Journal of Business Venturing, Elsevier, Elsevier, vol. 28(2), pages 195-210.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:jbvent:v:24:y:2009:i:1:p:62-80. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.