Advanced Search
MyIDEAS: Login to save this paper or follow this series

How Much You Know versus How Well I Know You: Selecting a Supplier for a Technically Innovative Component

Contents:

Author Info

  • Hoetker, Glenn

    (U of Illinois at Urbana-Champaign)

Abstract

I use transaction costs economics to model an assembler's choice of supplier for an innovative component. I extend the TCE model by drawing on the insights of the evolutionary view of strategy, which suggests a focus on the technical capabilities of potential suppliers, and the literature on interfirm relationships. Using information on the procurement of displays by notebook computer manufacturers, I find that assemblers always prefer a more technically capable supplier. As uncertainty increases, assemblers value prior transactions with a supplier. At higher levels of uncertainty, prior transactions become irrelevant and assemblers prefer internal suppliers. The model presented in this paper advances the theoretical frontiers of TCE, while expanding the range of managerial issues to which it can be applied.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by University of Illinois at Urbana-Champaign, College of Business in its series Working Papers with number 02-0106.

as in new window
Length:
Date of creation: 2002
Date of revision:
Handle: RePEc:ecl:illbus:02-0106

Contact details of provider:
Web page: http://www.business.uiuc.edu/Working_Papers/Main.asp
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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

Cited by:
  1. Ghozzi, Houda, 2008. "L'approche par les ressources et les compétences en tant que théorie de la firme : apports, limites et aménagements nécessaires," Economics Papers from University Paris Dauphine 123456789/2423, Paris Dauphine University.
  2. Kang, Min-Ping & Mahoney, Joseph T. & Tan, Danchi, 2007. "Why Firms Make Unilateral Investments Specific to Other Firms: The Case of OEM Suppliers," Working Papers 07-0110, University of Illinois at Urbana-Champaign, College of Business.
  3. Andreas Reinstaller, 2011. "The Modularity of Technology and Organisations. Implications for the Theory of the Firm," WIFO Working Papers 398, WIFO.
  4. Moeen, Mahka & Somaya, Deepak & Mahoney, Joseph T., 2011. "Supply Portfolio Concentration in Outsourced Knowledge-Based Services," Working Papers 11-0106, University of Illinois at Urbana-Champaign, College of Business.
  5. Lokshin, Boris & Hagedoorn, John & Letterie, Wilko, 2010. "The bumpy road of technology partnerships: Understanding causes and consequences of partnership mal-functioning," MERIT Working Papers 057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  6. Marcus Wagner, 2008. "Technology sourcing by large incumbents through acquisition of small firms," SFB 649 Discussion Papers SFB649DP2008-055, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  7. Vlaar, P.W.L. & van den Bosch, F.A.J. & Volberda, H.W., 2006. "On the Evolution of Trust, Distrust, and Formal Coordination and Control in Interorganizational Relationships: Towards an Integrative Framework," ERIM Report Series Research in Management ERS-2006-035-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
  8. Ghozzi, Houda, 2008. "Examining resource based view against transactional costs Approach in the french poultry industry : treading upon eggs," Economics Papers from University Paris Dauphine 123456789/2412, Paris Dauphine University.
  9. Anderson, Edward & Coltman, Tim & Devinney, Timothy M. & Keating, Byron W., 2010. "What Drives the Choice of Third Party Logistics Provider?," MPRA Paper 40508, University Library of Munich, Germany.

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:ecl:illbus:02-0106. 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: ().

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.