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

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  • 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.

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Bibliographic Info

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

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

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Handle: RePEc:eee:jbvent:v:24:y:2009:i:1:p:62-80

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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;

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References

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Citations

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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. Isabel Maria Bodas Freitas & Nick von Tunzelmann, 2013. "Alignment of Innovation Policy Objectives: a demand side perspective," DRUID Working Papers 13-02, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  3. 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.
  4. 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.
  5. Chan, J.H. & Reiner, D., 2011. "Dynamics of Evolution in the Global Fuel-Ethanol Industry," Cambridge Working Papers in Economics 1129, Faculty of Economics, University of Cambridge.

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