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Knowledge Transfer in Buyer-Supplier Relationships – When It (Not) Occurs Author info | Abstract | Publisher info | Download info | Related research | Statistics Werner Bönte
Lars Wiethaus
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Abuyer’s technical knowledge may increase the efficiency of its supplier.Suppliers, however, frequently maintain relationships with additional buyers. Knowledge disclosure then bears the risk of benefiting one’s own competitor due to opportunistic knowledge transmission through the common supplier. We show that in one-shot relationships no knowledge disclosure takes place because the supplier has an incentive for knowledge transmission and, in anticipation of this outcome, buyers refuse to disclose any of their knowledge. In repeated relationships knowledge disclosure is stabilized by larger technological proximity between buyers and suppliers and destabilized by the absolute value of the knowledge.
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Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung in its series RWI Discussion Papers with number
0034.
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Length: 28 pages
Date of creation: Nov 2005Date of revision:
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Keywords: Knowledge Transfer ; Knowledge Spillovers ; Cooperation ; Innovation ; Repeated Games ; Find related papers by JEL classification: O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
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