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How knowledge attributes influence alliance governance choices: A theory development note
Institution:1. Adam Smith Business School, University of Glasgow, University Avenue, Glasgow, G12 8QQ, UK;2. Ivey Business School, Western University, 1255 Western Road, London, Ontario N6G 0N1, Canada;1. Essex Business School, University of Essex, Elmer Approach, Southend-on-Sea SS1 1LW, United Kingdom;2. Department of Management, Bilkent University, Bilkent, Ankara 06800, Turkey;3. Southampton Business School, University of Southampton, Building 2, Highfield Campus, Southampton SO17 1BJ, United Kingdom
Abstract:This note develops theory regarding how attributes of corporate knowledge influence the selection of alliance governance mode. Different types of corporate knowledge are placed on a spectrum between a classic public good and deeply embedded knowledge. Hypotheses are developed regarding knowledge characteristics such as transfer costs, consequences of appropriation, observability, information asymmetry between negotiating partners, the difficulty of valuing knowledge, and the “disclosure dilemma.” Next, hypotheses are presented on the choice of alliance governance mode as determined by knowledge attributes (codification, newness, complexity, and teachability) and partner characteristics (such as knowledge absorptive capacity). These testable propositions should make for fruitful empirical studies on the relatively little researched area of alliance governance modal choice.
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