| Interorganizational development activities: The likelihood and timing of contracts |
| | Katila, Riitta | U. of Texas, Austin | rkatila@mail.utexas.edu | (512)-471-3676 |
| | Mang, Paul Y. | McKinsey & Co. | Paul_Mang@mckinsey.com | (312)-551-3680 |
| | This research examines two critical decisions facing R&D-intensive firms; whether and when to exchange their know-how with potential collaborative partners. While prior research has applied the transaction cost economics framework to study these know-how transactions, we propose that a more complete understanding of organizational boundaries requires examination of how the institutionalization processes in firms and markets affect interfirm transactions. Economics of institutions (Langlois, 1992) and transaction cost economics (Williamson, 1975) are used as theoretical perspectives in this study. Empirical results on 104 biopharmaceutical projects demonstrate that biopharmaceutical projects in more developed subfields are more likely to be transferred earlier in their development cycles than their predecessors during the infancy of the subfield, supporting institutional arguments. Unexpectedly, another institutional variable, firm contracting experience, was found to increase the time to transaction. We also find that transaction cost factors do not lose importance in the long run. This study has three main contributions. First, the paper shows how both transaction cost and institutional factors affect probability and timing of contracting. Especially the question of timing has received relatively little attention in prior work, despite its importance for high-technology firms from the point of view of optimal resource allocation (Mosakowski, 1991). Second, this study increases our understanding of institutional determinants of innovation by examining rational organizational action in the tradition of economics of institutions. Third, our study contributes to the discussion of the knowledge-based view of the firm by examining one aspect of knowledge strategy, how to transfer knowledge across organizations. |
| | Keywords: know-how; transactions; biotechnology |
| The Antecedents and Consequences of Commitment in Information Technology Strategic Alliances |
| | Young-Ybarra, Candace E. | Chapman U. | cyoung@chapman.edu | (714)744-7094 |
| | Marcoulides, George | California State U., Fullerton | gmarcoulides@fullerton.edu | (714)-278-7033 |
| | The purpose of this study is to examine a model concerning the factors that impact an organization's
commitment to a strategic alliance as well as the consequences of that commitment. The proposed
model is estimated and tested using structural equation modeling techniques. Data were collected from
91 organizations involved in information technology strategic alliances. This research utilizes transaction
cost theory and social exchange theory to examine factors that impact an organization's commitment to
a strategic alliance as well as the consequences of that commitment. From transaction cost theory the
factors examined include asset specificity, hostages and reciprocal investments. Trust (both individual
and organizational level) and power/dependence are factors from social exchange theory that were proposed
to lead to commitment to a strategic alliance. The results indicate that continuity, flexibility and performance can be
determined from knowledge of an organization's commitment to the strategic alliance. These results suggest that
structuring an alliance to facilitate commitment of the partners is essential in realizing positive outcomes of the alliance.
Results also indicate that social exchange theory, specifically trust, provides a more thorough explanation of commitment
than does transaction cost economics or power/dependence. The theoretical and practical implications of the results
and methodology are discussed.
|
| | Keywords: Commitment; Alliances; Performance |
| The Impact of Internal Context and Trust on Knowledge and Technology Transfer Activities Within Industry-University Cooperative Ventures |
| | Santoro, Michael D. | Lehigh U. | mds8@lehigh.edu | 610-758-6414 |
| | Gopalakrishnan, Shanthi | Fairleigh Dickinson U. | sgopalakr@alpha.fdu.edu | (201)-692-7231 |
| | Due to rapid technological development, shorter product life-cycles, and intense global competition, organizations must focus on an active program of knowledge acquistion and assimilation to advance new technologies necessary for the firm's long-term success. This study uses a multi-method research design to examine the effect of internal organization context and trust on knowledge and technology transfer activities within cooperative ventures between industrial firms and university technology research centers. Secondary and interview data were initially collected and analyzed to develop a conceptual framework and hypotheses. Survey questionnaire data was then collected and used for hypotheses testing. Finally, in-depth, structured interviews were conducted with both industrial firm managers and university center directors to validate the survey questionnaire data and to obtaine richer details on the phenomenon.
Results show that knowledge and technology transfer activities are facilitated when industrial firms are larger, have more hierarchical structures, have stronger organizational cultures, and when the industrial firm is more trusting of the university technology research center. The implications of these findings for both industry and universities are discussed. |
| | Keywords: Industry; University; Collaboration |
| Beyond Complementarities, Compatibilities, and Synergies: Theoretical and Empirical Views on Interpartner Overlaps in Alliances |
| | Tucci, Christopher | New York U. | tucci@stern.nyu.edu | (212)998-0285 |
| | What are complementarities between alliance partners based on? How can we measure them?
Using the knowledge gained from an understanding of those questions, firms may exploit
knowledge of interorganizational overlaps, or similarities, between partners to lead to better
fulfillment of alliance goals and thereby better corporate performance. We examine
complementarities in this paper at the interorganizational level and propose interorganizational
characteristics important to alliance success. These characteristics relate to the overlap between
partners along three important dimensions: competition (market overlap), capabilities (technical
overlap), and communications (social overlap).
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| | Keywords: alliances; overlaps; complementarities |