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Can a firm find the balance between openness and secrecy? Towards a theory of an optimum level of disclosure

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  • Farok J Contractor

    (Rutgers University)

Abstract

The purpose of this article is not merely to counter assertions about technology leakage/spillovers being innocuous or benevolent, but to go further and illuminate an under-researched question: How can companies seek the optimum balance between conscious disclosure and secrecy? The article works towards a theory of optimum disclosure, by identifying possible benefits and costs of disclosure or openness. In Paradigm 1, most companies find the net benefits of disclosure/openness to be negative. In Paradigm 2, applicable to a few highly networked or open-source MNEs, there could be net benefits over a limited range and up to an optimum point.

Suggested Citation

  • Farok J Contractor, 2019. "Can a firm find the balance between openness and secrecy? Towards a theory of an optimum level of disclosure," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 261-274, March.
    • Handle: RePEc:pal:jintbs:v:50:y:2019:i:2:d:10.1057_s41267-018-0204-2
    DOI: 10.1057/s41267-018-0204-2
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