IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/18042.html
   My bibliography  Save this paper

Technology Sourcing in New Product Development Projects: When and how to use external resources?

Author

Listed:
  • KANI Masayo
  • MOTOHASHI Kazuyuki

Abstract

This paper provides empirical analyses to understand the management of external technology sourcing using a novel dataset of new product development (NPD) projects in Japanese firms, focusing on the difference between bilateral and unilateral contract-based alliances. External technology sourcing takes on various forms that can be divided into two categories: bilateral alliances, such as joint research and development (R&D), and unilateral alliances, such as licensing and commissioned R&D. The former style involves the cooperation process of joint R&D with a partner, whereas the latter involves the straightforward process of technology acquisition from a partner. In this paper, the determinants of the sourcing strategy for each contract type are investigated, and we find that a firm is likely to use external technology sourcing in exploratory projects, and that the type of sourcing will differ between large and small firms. Furthermore, a bilateral alliance is likely found to be used for market pull-type projects, while technology push-type ones are more often managed by unilateral alliances.

Suggested Citation

  • KANI Masayo & MOTOHASHI Kazuyuki, 2018. "Technology Sourcing in New Product Development Projects: When and how to use external resources?," Discussion papers 18042, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:18042
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/18e042.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bruce Kogut, 1988. "Joint ventures: Theoretical and empirical perspectives," Strategic Management Journal, Wiley Blackwell, vol. 9(4), pages 319-332, July.
    2. Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
    3. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    4. Dahlander, Linus & Gann, David M., 2010. "How open is innovation?," Research Policy, Elsevier, vol. 39(6), pages 699-709, July.
    5. Peter G. Klein, 2005. "The Make-or-Buy Decision: Lessons from Empirical Studies," Springer Books, in: Claude Menard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 17, pages 435-464, Springer.
    6. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    7. Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
    8. Belderbos, Rene & Carree, Martin & Lokshin, Boris, 2004. "Cooperative R&D and firm performance," Research Policy, Elsevier, vol. 33(10), pages 1477-1492, December.
    9. Robert M. Grant & Charles Baden‐Fuller, 2004. "A Knowledge Accessing Theory of Strategic Alliances," Journal of Management Studies, Wiley Blackwell, vol. 41(1), pages 61-84, January.
    10. Arora, Ashish & Cohen, Wesley M. & Walsh, John P., 2016. "The acquisition and commercialization of invention in American manufacturing: Incidence and impact," Research Policy, Elsevier, vol. 45(6), pages 1113-1128.
    11. Claude Menard & Mary M. Shirley (ed.), 2005. "Handbook of New Institutional Economics," Springer Books, Springer, number 978-0-387-25092-2, September.
    12. Motohashi, Kazuyuki, 2005. "University-industry collaborations in Japan: The role of new technology-based firms in transforming the National Innovation System," Research Policy, Elsevier, vol. 34(5), pages 583-594, June.
    13. Massimo G. Colombo, 2003. "Alliance form: a test of the contractual and competence perspectives," Strategic Management Journal, Wiley Blackwell, vol. 24(12), pages 1209-1229, December.
    14. Masayo Kani & Kazuyuki Motohashi, 2017. "Determinants of Demand for Technology in Relationships with Complementary Assets among Japanese Firms," Working Papers DP-2016-38, Economic Research Institute for ASEAN and East Asia (ERIA).
    15. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    16. Belderbos, Rene & Carree, Martin & Lokshin, Boris, 2004. "Cooperative R&D and firm performance," Research Policy, Elsevier, vol. 33(10), pages 1477-1492, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. KANI Masayo & MOTOHASHI Kazuyuki, 2016. "Understanding External Technology Sourcing in New Product Development Projects: Bilateral vs. unilateral contracts," Discussion papers 16104, Research Institute of Economy, Trade and Industry (RIETI).
    2. 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.
    3. Adrián Kovács & Bart Looy & Bruno Cassiman, 2015. "Exploring the scope of open innovation: a bibliometric review of a decade of research," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 951-983, September.
    4. Martínez-Noya, Andrea & García-Canal, Esteban, 2021. "Innovation performance feedback and technological alliance portfolio diversity: The moderating role of firms’ R&D intensity," Research Policy, Elsevier, vol. 50(9).
    5. Colombo, Massimo G. & Grilli, Luca & Piva, Evila, 2006. "In search of complementary assets: The determinants of alliance formation of high-tech start-ups," Research Policy, Elsevier, vol. 35(8), pages 1166-1199, October.
    6. Martinez-Noya, Andrea & Narula, Rajneesh, 2018. "What more can we learn from R&D alliances? : A review and research agenda," MERIT Working Papers 2018-022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Cassiman, Bruno & Di Guardo, Maria Chiara & Valentini, Giovanni, 2010. "Organizing links with science: Cooperate or contract?: A project-level analysis," Research Policy, Elsevier, vol. 39(7), pages 882-892, September.
    8. Li, Zhengyu, 2016. "Essays on knowledge sourcing and technological capability : A knowledge structure perspective," Other publications TiSEM b8ff31fc-c57b-4bc3-b5a4-0, Tilburg University, School of Economics and Management.
    9. Yung-Chang Hsiao & Chung-Jen Chen & Bou-Wen Lin & Chia-I Kuo, 2017. "Resource alignment, organizational distance, and knowledge transfer performance: the contingency role of alliance form," The Journal of Technology Transfer, Springer, vol. 42(3), pages 635-653, June.
    10. Laursen, Keld & Salter, Ammon J., 2014. "The paradox of openness: Appropriability, external search and collaboration," Research Policy, Elsevier, vol. 43(5), pages 867-878.
    11. Garcia Martinez, Marian & Zouaghi, Ferdaous & Sanchez Garcia, Mercedes, 2017. "Capturing value from alliance portfolio diversity: The mediating role of R&D human capital in high and low tech industries," Technovation, Elsevier, vol. 59(C), pages 55-67.
    12. Gkypali, Areti & Filiou, Despoina & Tsekouras, Kostas, 2017. "R&D collaborations: Is diversity enhancing innovation performance?," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 143-152.
    13. Chapman, Gary & Lucena, Abel & Afcha, Sergio, 2018. "R&D subsidies & external collaborative breadth: Differential gains and the role of collaboration experience," Research Policy, Elsevier, vol. 47(3), pages 623-636.
    14. Lin, Jun-You, 2014. "Effects on diversity of R&D sources and human capital on industrial performance," Technological Forecasting and Social Change, Elsevier, vol. 85(C), pages 168-184.
    15. Belderbos, Rene & Faems, Dries & Leten, Bart & Van Looy, Bart, 2009. "Technological activities and their impact on the financial performance of the firm: Exploitation and exploration within and between firms," MERIT Working Papers 2009-067, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Jing Zhang & Charles Baden‐Fuller, 2010. "The Influence of Technological Knowledge Base and Organizational Structure on Technology Collaboration," Journal of Management Studies, Wiley Blackwell, vol. 47(4), pages 679-704, June.
    17. Martin Backfisch, 2014. "Search Balance and Product and Process Innovations," MAGKS Papers on Economics 201461, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    18. Alessandra Scandura, 2019. "The role of scientific and market knowledge in the inventive process: evidence from a survey of industrial inventors," The Journal of Technology Transfer, Springer, vol. 44(4), pages 1029-1069, August.
    19. Alex Coad & Agustí Segarra-Blasco & Mercedes Teruel, 2021. "A bit of basic, a bit of applied? R&D strategies and firm performance," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1758-1783, December.
    20. Stienstra, Miranda, 2020. "The determinants and performance implications of alliance partner acquisition," Other publications TiSEM 7fdee0c2-d4d2-4f5b-95e3-2, Tilburg University, School of Economics and Management.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:eti:dpaper:18042. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.