Antecedents and performance consequences of governance structures in R&D alliances
Journal
Journal of Southeast University (English Edition)
Journal Volume
28
Journal Issue
3
Pages
360-366
Date Issued
2012
Author(s)
Abstract
Traditionally governance structures are classified into "hierarchy or market" or "equity or non-equity." However, such classifications may not be effective in characterizing all governance structures of research and development (R&D) alliances. Therefore, the first objective of this study is to investigate why there exist different organizational governance structures in managing R&D alliances; the second objective of this study is to give strategic advice in choosing appropriate forms with respect to various characteristics of R&D alliances. Through the theoretical lens that integrate both transaction cost economics (TCE) and the resource-based view (RBV), a model that focuses on six major factors is developed for determining governance structure choices, namely, technological uncertainty, cultural difference, asset specificity, technology complementarity, appropriability of the individual firm's know-how, and trust. An R&D alliance with higher technological uncertainty, larger cultural differences, and greater concerns for protecting an individual's know-how is more likely to adopt non-integrated alliances as the governing structure. An R&D alliance with a higher degree of asset-specificity, greater technology complementarity and greater trust among partnering organizations is more likely to adopt integrated alliances as the governing structure; an R&D alliance in the face of lower technological uncertainty will tend to adopt integrated alliances. The more aligned the choice of the governance structure with its determinants, the better the R&D alliance will perform, and vice versa. © Copyright;.
Type
journal article