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The adoption of agency business activity, product innovation, and performance in Chinese technology ventures
Author(s) -
Li Haiyang,
AtuaheneGima Kwaku
Publication year - 2002
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.233
Subject(s) - agency (philosophy) , business , alliance , product (mathematics) , industrial organization , marketing , value (mathematics) , distribution (mathematics) , dual (grammatical number) , art , mathematical analysis , philosophy , geometry , mathematics , literature , epistemology , machine learning , political science , computer science , law
This study examines the roles of firm characteristics and environmental factors in the formation of interfirm alliances. Specifically, we examine the dual role of these groups of factors as inducements and opportunities for Chinese high‐technology new ventures (HTNVs) in their adoption of agency business activity, a downstream type of alliance involving marketing and distribution of the products of foreign firms. Results suggest that both internal and external factors are related to the adoption of agency business activity but the inducement and opportunity value of environmental uncertainty may be dampened by institutional support provided to HTNVs. Further, we find that successful agency business activity is positively related to new venture performance but negatively related to its product innovation efforts. Theoretical and managerial implications are discussed. Copyright © 2002 John Wiley & Sons, Ltd.