UNU-MERIT Working Papers Series
External technology sourcing: The effect of uncertainty on governance mode choice
Vareska van de Vrande, Wim Vanhaverbeke & Geert Duysters #2007-019This study examines the effect of external and relational uncertainty on
the governance choice for inter-organizational technology sourcing. We
develop a number of hypotheses about the impact of environmental
turbulence, technological newness, technological distance and prior
cooperation on the choice between different governance modes. Data about
external technology sourcing transactions in the pharmaceutical industry
do not provide evidence for a continuum from less to more integrated
sourcing modes. However, we find that the ranking depends on the type of
uncertainty, indicating that firms tackle different types of uncertainty
with different governance modes.
Keywords: Open Innovation, Corporate Venture Capital, Mergers and Acquisitions
JEL classification: 032, 031
UNU-MERIT Working Papers
ISSN 1871-9872
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