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Knowledge Transfer in Buyer-Supplier Relationships - When It (Not) Occurs

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  • Bönte, Werner
  • Wiethaus, Lars

Abstract

Abuyer?s technical knowledge may increase the efficiency of its supplier. Suppliers, however, frequently maintain relationships with additional buyers. Knowledge disclosure then bears the risk of benefiting one?s own competitor due to opportunistic knowledge transmission through the common supplier. We show that in one-shot relationships no knowledge disclosure takes place because the supplier has an incentive for knowledge transmission and, in anticipation of this outcome, buyers refuse to disclose any of their knowledge. In repeated relationships knowledge disclosure is stabilized by larger technological proximity between buyers and suppliers and destabilized by the absolute value of the knowledge.

Suggested Citation

  • Bönte, Werner & Wiethaus, Lars, 2005. "Knowledge Transfer in Buyer-Supplier Relationships - When It (Not) Occurs," RWI Discussion Papers 34, RWI - Leibniz-Institut für Wirtschaftsforschung.
    • Handle: RePEc:zbw:rwidps:34
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    References listed on IDEAS

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    2. Creane, Anthony, 2007. "Productivity information in vertical sharing agreements," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 821-841, August.

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    More about this item

    Keywords

    Knowledge Transfer; Knowledge Spillovers; Cooperation; Innovation; Repeated Games;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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