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Enhancing Value via Cooperation: Firms' Process Benefits from Participation in a Consortium

  • Xia, Mu

    (U of Illinois at Urbana-Champaign)

  • Zhao, Kexin

    (U of North Carolina, Charlotte)

  • Mahoney, Joseph T.

    (U of Illinois at Urbana-Champaign)

Registered author(s):

    Firms benefit from participating in a consortium in two ways: from the final products and from the cooperation process. We define the latter as process benefits, which include both inter-organizational learning benefits and social capital benefits. This paper examines the drivers of these two types of process benefits. Based on 232 surveys collected from seven e-business standard consortia, our empirical findings show that firms expect more process benefits if they are more technically capable, value the final output higher, and participate in a better-managed consortium. Among the three, standard valuation is the most influential factor, indicating that the output benefits and process benefits are highly correlated. Surprisingly, within standard consortia, we also find that relational risk does not have a statistically significant impact on process benefits.

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    File URL: http://www.business.illinois.edu/Working_Papers/papers/08-0109.pdf
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    Paper provided by University of Illinois at Urbana-Champaign, College of Business in its series Working Papers with number 08-0109.

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    Date of creation: 2008
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    Handle: RePEc:ecl:illbus:08-0109
    Contact details of provider: Web page: http://www.business.uiuc.edu/Working_Papers/Main.asp

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    1. Bayona, Cristina & Garcia-Marco, Teresa & Huerta, Emilio, 2001. "Firms' motivations for cooperative R&D: an empirical analysis of Spanish firms," Research Policy, Elsevier, vol. 30(8), pages 1289-1307, October.
    2. Nancy T. Gallini, 2002. "The Economics of Patents: Lessons from Recent U.S. Patent Reform," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 131-154, Spring.
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