IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v55y2009i4p635-649.html
   My bibliography  Save this article

Alliance Structure and the Scope of Knowledge Transfer: Evidence from U.S.-Japan Agreements

Author

Listed:
  • Joanne Oxley

    () (Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada)

  • Tetsuo Wada

    () (Faculty of Economics, Gakushuin University, Tokyo 171-8588, Japan)

Abstract

Prior research suggests that equity joint ventures (JVs) are particularly effective vehicles for accessing complex technology. Different schools of thought have emphasized different reasons why joint ventures might support greater knowledge transfer than "bare" license agreements: incentive alignment, organizational embeddedness, and enhanced administrative controls. We probe and refine these theoretical perspectives, drawing out implications of the different theories for the extent and speed of alliance-related knowledge transfer, as well as for knowledge "leakage" in areas not directly related to alliance activities. Using a proprietary data set derived from regulatory filings with the Japanese government we test these implications in our empirical analysis of U.S.-Japan agreements. The picture that emerges from the analysis is one of particularly intense but contained knowledge transfer in equity joint ventures, relative to bare license agreements: knowledge transfers directly related to the alliance activity are enhanced in the JV, and the speed of integration into the Japanese firm's subsequent innovations also increases. In marked contrast, leakage of unrelated technology is significantly reduced. These findings suggest that administrative structures that reduce technology leakage are a key feature of the equity joint venture, a result that is inconsistent with a "pure" knowledge-based perspective on alliances.

Suggested Citation

  • Joanne Oxley & Tetsuo Wada, 2009. "Alliance Structure and the Scope of Knowledge Transfer: Evidence from U.S.-Japan Agreements," Management Science, INFORMS, vol. 55(4), pages 635-649, April.
  • Handle: RePEc:inm:ormnsc:v:55:y:2009:i:4:p:635-649
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.1080.0968
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gomes-Casseres, Benjamin & Hagedoorn, John & Jaffe, Adam B., 2006. "Do alliances promote knowledge flows?," Journal of Financial Economics, Elsevier, vol. 80(1), pages 5-33, April.
    2. 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, vol. 76(5), pages 984-1001, December.
    3. Sampat, Bhaven N. & Mowery, David C. & Ziedonis, Arvids A., 2003. "Changes in university patent quality after the Bayh-Dole act: a re-examination," International Journal of Industrial Organization, Elsevier, vol. 21(9), pages 1371-1390, November.
    4. Christina Ahmadjian & Joanne Oxley, 2006. "Using Hostages to Support Exchange: Dependence Balancing and Partial Equity Stakes in Japanese Automotive Supply Relationships," Journal of Law, Economics, and Organization, Oxford University Press, vol. 22(1), pages 213-233, April.
    5. Reuer, Jeffrey J. & Arino, Africa & Mellewigt, Thomas, 2006. "Entrepreneurial alliances as contractual forms," Journal of Business Venturing, Elsevier, vol. 21(3), pages 306-325, May.
    6. Balakrishnan, Srinivasan & Koza, Mitchell P., 1993. "Information asymmetry, adverse selection and joint-ventures : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 20(1), pages 99-117, January.
    7. Megan MacGarvie, 2006. "Do Firms Learn from International Trade?," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 46-60, February.
    8. Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
    9. J Michael Geringer & Louis Hebert, 1989. "Control and Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(2), pages 235-254, June.
    10. Manuel Trajtenberg & Adam B. Jaffe & Michael S. Fogarty, 2000. "Knowledge Spillovers and Patent Citations: Evidence from a Survey of Inventors," American Economic Review, American Economic Association, vol. 90(2), pages 215-218, May.
    11. Guilhem Bascle, 2008. "Controlling for endogeneity with instrumental variables in strategic management research," Post-Print hal-00576795, HAL.
    12. Janowicz-Panjaitan, Martyna & Noorderhaven, Niels G., 2008. "Formal and informal interorganizational learning within strategic alliances," Research Policy, Elsevier, vol. 37(8), pages 1337-1355, September.
    13. J. Myles Shaver, 1998. "Accounting for Endogeneity When Assessing Strategy Performance: Does Entry Mode Choice Affect FDI Survival?," Management Science, INFORMS, vol. 44(4), pages 571-585, April.
    14. Pisano, Gary P, 1989. "Using Equity Participation to Support Exchange: Evidence from the Biotechnology Industry," Journal of Law, Economics, and Organization, Oxford University Press, vol. 5(1), pages 109-126, Spring.
    15. Michael P. Murray, 2006. "Avoiding Invalid Instruments and Coping with Weak Instruments," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 111-132, Fall.
    16. Kira R. Fabrizio, 2007. "University patenting and the pace of industrial innovation," Industrial and Corporate Change, Oxford University Press, vol. 16(4), pages 505-534, August.
    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


    Cited by:

    1. repec:eee:tefoso:v:122:y:2017:i:c:p:12-23 is not listed on IDEAS
    2. Contractor, Farok J. & Woodley, James A., 2015. "How the alliance pie is split: Value appropriation by each partner in cross-border technology transfer alliances," Journal of World Business, Elsevier, vol. 50(3), pages 535-547.
    3. Andrea R. Hugill & Jodi L. Short & Michael W. Toffel, 2016. "Beyond Symbolic Responses to Private Politics: Examining Labor Standards Improvement in Global Supply Chains," Harvard Business School Working Papers 17-001, Harvard Business School.
    4. Olivier Bertrand & Laurence Capron, 2015. "Productivity enhancement at home via cross-border acquisitions: The roles of learning and contemporaneous domestic investments," Strategic Management Journal, Wiley Blackwell, vol. 36(5), pages 640-658, May.
    5. Leischnig, Alexander & Geigenmueller, Anja & Lohmann, Stefanie, 2014. "On the role of alliance management capability, organizational compatibility, and interaction quality in interorganizational technology transfer," Journal of Business Research, Elsevier, vol. 67(6), pages 1049-1057.
    6. Hans T. W. Frankort & John Hagedoorn & Wilko Letterie, 2016. "Learning horizon and optimal alliance formation," Computational and Mathematical Organization Theory, Springer, vol. 22(2), pages 212-236, June.
    7. repec:eee:respol:v:46:y:2017:i:9:p:1629-1643 is not listed on IDEAS
    8. repec:eee:tefoso:v:122:y:2017:i:c:p:151-169 is not listed on IDEAS
    9. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    10. Frankort, Hans T.W., 2016. "When does knowledge acquisition in R&D alliances increase new product development? The moderating roles of technological relatedness and product-market competition," Research Policy, Elsevier, vol. 45(1), pages 291-302.
    11. Park, Chansoo & Vertinsky, Ilan, 2016. "Reverse and conventional knowledge transfers in international joint ventures," Journal of Business Research, Elsevier, vol. 69(8), pages 2821-2829.
    12. Pak, Yong Suhk & Ra, Wonchan & Lee, Jong Min, 2015. "An integrated multi-stage model of knowledge management in international joint ventures: Identifying a trigger for knowledge exploration and knowledge harvest," Journal of World Business, Elsevier, vol. 50(1), pages 180-191.
    13. Anupama Phene & Stephen Tallman, 2014. "Knowledge Spillovers and Alliance Formation," Journal of Management Studies, Wiley Blackwell, vol. 51(7), pages 1058-1090, November.
    14. Mayer-Haug, Katrin & Read, Stuart & Brinckmann, Jan & Dew, Nicholas & Grichnik, Dietmar, 2013. "Entrepreneurial talent and venture performance: A meta-analytic investigation of SMEs," Research Policy, Elsevier, vol. 42(6), pages 1251-1273.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:55:y:2009:i:4:p:635-649. 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: (Mirko Janc). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.