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Vertical ally‐or‐acquire choice and technological performance: a resource dependence perspective
Author(s) -
Lin LiangHung
Publication year - 2018
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/radm.12268
Subject(s) - resource dependence theory , perspective (graphical) , industrial organization , asymmetry , transaction cost , business , corporate governance , resource (disambiguation) , order (exchange) , resource based view , information asymmetry , database transaction , affect (linguistics) , microeconomics , economics , marketing , competitive advantage , computer science , psychology , computer network , physics , communication , finance , quantum mechanics , artificial intelligence , programming language
In order to advance our understanding of technological firms’ vertical ally‐or‐acquire choices, this study applies resource dependence theory to explore how mutual dependence and dependence asymmetry between partners’ technologies affect governance choice. The collective effect of mutual dependence, dependence asymmetry and governance choice on technological performance of the transaction is also examined. Heckman's two‐stage analyses of 135 technology alliances and 91 technology acquisitions suggest that mutually dependent firms tend to adopt acquisitions, whereas asymmetrically dependent firms tend to adopt alliances. The fits between dependence asymmetry and alliances, and between mutual dependence and acquisitions consequently enhance technological performance.