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Knowledge misappropriation risks and contractual complexity in entrepreneurial ventures’ non-equity alliances

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  • Massimo G. Colombo

    (Politecnico di Milano)

  • Evila Piva

    (Politecnico di Milano)

Abstract

This paper explores the role of anticipated knowledge misappropriation risks in contract design in non-equity alliances involving high-tech entrepreneurial ventures. We argue that these ventures anticipate higher knowledge misappropriation risks, and are, thus, inclined to negotiate more complex contracts, when partner firms have greater ability and incentives to appropriate the ventures' technological knowledge, and knowledge misappropriation is more detrimental to the ventures. In the empirical sections of the paper, we consider 211 dyadic non-equity alliances involving Italian high-tech entrepreneurial ventures, and we examine the relationship between contractual complexity and a series of characteristics of partner firms associated to either higher ability/incentives to appropriate ventures’ knowledge or more negative consequences of misappropriation.

Suggested Citation

  • Massimo G. Colombo & Evila Piva, 2019. "Knowledge misappropriation risks and contractual complexity in entrepreneurial ventures’ non-equity alliances," Small Business Economics, Springer, vol. 53(1), pages 107-127, June.
    • Handle: RePEc:kap:sbusec:v:53:y:2019:i:1:d:10.1007_s11187-018-0062-0
    DOI: 10.1007/s11187-018-0062-0
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    2. Xie, Qiuhao & Gao, Ying & Xia, Nini & Zhang, Shuibo & Tao, Guowu, 2023. "Coopetition and organizational performance outcomes: A meta-analysis of the main and moderator effects," Journal of Business Research, Elsevier, vol. 154(C).
    3. Colombo, Massimo G. & Foss, Nicolai J. & Lyngsie, Jacob & Rossi Lamastra, Cristina, 2021. "What drives the delegation of innovation decisions? The roles of firm innovation strategy and the nature of external knowledge," Research Policy, Elsevier, vol. 50(1).

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    More about this item

    Keywords

    Alliances; Contractual complexity; Entrepreneurial ventures; Knowledge misappropriation risks;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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