The Comparative Effects of Transaction Cost Economics and Resource Based View: A Technological Alliance Motivational Perspective

Hwan Jin Kim

Abstract


This paper examines the impact of two main alliance motivation theories, transaction cost economics (TCE) and resource based view (RBV), on alliance processes among Korean manufacturing high-tech ventures. Results show that TCE and RBV are complimentarily explaining the formation of inter-firm alliances. TCE variables are more related with alliance partner characteristics while RBV is more linked with partner capabilities. Both show positive effects on performance. No significant effect is found on determining an alliance governance structure. While selecting appropriate technological alliance partners show positive effects on performance, no significant effect is found between alliance governance structure and performance. Factors of both theories impacting each alliance stage and analytical explanations of such impacts are discussed.


Keywords


High-tech ventures, resource based view, technological alliance motivation, transaction cost economics.

Full Text:

PDF

References


Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(Spring), 74-94.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.

Beamish, P. W. (1987). Joint ventures in LDCs: Partner selection and performance. Management International Review, 27(1), 23-37.

Buvik, A., & Andersen, O. (2002). The impact of vertical coordination on ex post transaction costs in domestic and international buyer-seller relationships. Journal of International Marketing,10(1), 1-24.

Chen, H., & Chen, T. (2002). Governance structures in strategic alliances: Transaction cost versus resource-based perspective. Journal of World Business, 38(1), 1-14.

Chi, T. (1994). Trading in Strategic Resources: Necessary Conditions, Transaction Cost Problems, and Choice of Exchange Structure. Strategic Management Journal, 15(4), 271-290.

Colombo, M. G. (2003). Alliance form: A test of the contractual and competence perspectives. Strategic Management Journal, 24(12), 1209-1229.

Cummings, J. L, & Holmberg, S. R. (2012). Best-fit alliance partners: The use of critical success factors in a comprehensive partner selection process. Long Range Planning, 45, 136-159.

Das, T. K., & Teng, B. S. (2000). A resource-based theory of strategic alliances. Journal of Management, 26(1), 31-61.

David, R. J., & Han, S. K. (2004). A systematic assessment of the empirical support for transaction cost economics. Strategic Management Journal, 25(1), 39-58.

Deeds D. L., & Hill, C. W. L. (1996). Strategic alliances and the rate of new product development: An empirical study of entrepreneurial biotechnology firms. Journal of Business Venturing, 11, 41–55.

Dong, L., & Glaister, K. W. (2006). Motives and partner selection criteria in international strategic alliances: Perspectives of Chinese firms. International Business Review, 15(6), 577-600.

Fornell, C., & Lacker, D. F. (1981). Structural equation models with unobservable variables and measurement errors. Journal of Marketing Research, 18(3), 382-388.

Geringer, J. M. (1991). Strategic determinants of partner selection criteria in international joint ventures. Journal of International Business Studies, 22(1), 41-62.

Glaister, K. W. (1996). UK-Western European strategic alliances: Motives and selection criteria. Journal of Euro-marketing, 54(4), 5-35.

Gulati, R. (1998). Alliances and networks. Strategic Management Journal, 19(4), 293-317.

Hagedoorn, J. (1990). Organizational modes of inter-firm cooperation and technology transfer. Technovation, 10(1), 17-30.

Hagedoorn, J. (2002). Growth patterns in R&D partnerships: An exploratory statistical study. International Journal of Industrial Organization, 21(4), 517-531.

Hagedoorn, J. (2006). Understanding the cross-level embeddedness of inter-firm partnership formation, Academy of Management Review, 31(3), 670–680.

Hagedoorn, J., & Schakenraad, J. (1994). The effect of strategic technology alliances on company performance. Strategic Management Journal, 15(4), 291-311.

Henderson, R., & Clark, K. (1990). Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly, 35(1), 81-112.

Hitt, M. A., Dacin, M. T., Levitas, E., Arregle, J. L., & Borza, A. (2000). Partner selection in emerging and developed market contexts: Resource-based and organizational learning perspectives. The Academy of Management Journal, 43(3), 449-467.

Kale, P., Dyer, J. H., & Singh, H. (2002). Alliance capability, stock market response and long-term alliance success: The role of the alliance function. Strategic Management Journal, 23(8), 747–767.

Kale, P., & Singh, H. (2009). Managing strategic alliances: What do we know now, and where do we go from here? The Academy of Management, 23(3), 45-62.

Kohers, N., & Kohers. T. (2000). The value creation potential of high-tech mergers. Financial Analysts Journal, 56(3), 40-50.

Lai, W. H., & Chang, P. L. (2010). Corporate motivation and performance in R&D alliances. Journal of Business research, 63(5), 490-496.

Lee, P. K. C., Yeung, A. C. L., & Cheng, T. C. E. (2009). Supplier alliances and environmental uncertainty: An empirical study. International Production Economics, 120(1), 190–204.

Lin, Z., Yang, H., & Arya, B. (2009). Alliance partners and firm performance: Resource complementarity and status association. Strategic Management Journal, 30(9), 921–940.

Nielsen, B. B. (2003). An empirical investigation of the drivers of international strategic alliance formation. European Management Journal, 21(3), 301-322.

Odagiri, H. (2003). Transaction costs and capabilities as determinants of the R&D boundaries of the firm: A case study of the ten largest pharmaceutical firms in Japan. Managerial and Decision Economics, 24, 187-211.

Oxley, J. E., & Sampson, R. C. (2004). The scope and governance of international R&D alliances. Strategic Management Journal, 25, 723—749.

Park, S. H., Chen, R. R., & Gallagher, S. (2002). Firm resources as moderators of the relationship between market growth and strategic alliances in semiconductor start-ups. The Academy of Management Journal, 45(3), 527-545.

Pisano, G. P. (1990). The R&D Boundaries of the Firm: An Empirical Analysis. Administrative Science Quarterly, 35(1), 153-176.

Rai, A., Borah, S., & Ramaprasad, A. (1996). Critical success factors for strategic alliances in the information technology industry: An empirical study. Decision Sciences, 27(1), 141-155.

Reuer, J. J., & Miller, K. D. (1997). Agency costs and the performance implications of international joint venture internalization. Strategic Management Journal, 18(6), 425-438.

Rothaermel, F. T., & Alexandre, M. T. (2009). Ambidexterity in technology sourcing: The moderating role of absorptive capacity. Organization Science, 20(4), 759-780.

Rothaermel, F. T., & Hill, C. W. L. (2005). Technological discontinuities and complementary assets: A longitudinal study of industry and firm performance. Organization Science, 16(1), 52-70.

Sampson, R. C. (2004). The cost of misaligned governance in R&D alliances. Journal of Law, Economics and Organization, 20(2), 484-526.

Santoro, M. D., & McGill, J. P. (2005). The effect of uncertainty and asset co-specialization on governance in biotechnology alliances. Strategic Management Journal, 26(13), 1261-1269.

Silverman, B. S. (1998). Technological resources and the direction of corporate diversification: Toward and integration of the resource-based view and transaction cost economics. Management Science, 45(8), 1109-1124.

Song, M., Droge, C., Hanvanich, S., & Calantone, R. (2005). Marketing and technology resource complementarity: An analysis of their interaction effect in two environmental contexts. Strategic Management Journal, 26(3), 259-276.

Tallman, S. B., & Shenkar, O. (1990), International cooperative venture strategies: Outward investment and small firms from NICs. Management International Review, 30(4), 299-315.

Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.

Williamson, O. E. (1981). The economics of organization: The transaction cost approach. American Journal of Sociology, 87(3), 548-577.

Williamson, O. E. (1985). The economic institutions of capitalism. New York: Free Press.

Williamson, O. E. (1991). Comparative economic organization: The analysis of discrete structural alternatives. Administrative Science Quarterly, 36(2), 269-296.

Wu, W. Y., Shih, H. A., & Chan, H. C. (2009). The analytic network process for partner selection criteria in strategic alliances. Expert Systems with Applications, 36(3), 4646–4653.

Yasuda, H. (2005). Formation of strategic alliances in high-technology industries: comparative study of the resource-based theory and the transaction-cost theory. Technovation, 25(7), 763–770.

Zahra, S. A., & Hayton, J. C. (2008). The effect of international venturing on firm performance: The moderating influence of absorptive capacity. Journal of Business Venturing, 23(2), 195-220.

Zhou, X., Li, Q., Zhao, W., & Cai, H. (2003). Embeddedness and contractual relationships in China's transitional economy. American Sociological Review, 68(1), 75-102.




DOI: http://dx.doi.org/10.18533/ijbsr.v6i5.925

Refbacks

  • There are currently no refbacks.




Copyright (c) 2016 Hwan Jin Kim

 ...........................................................................................................................

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

............................................................................................................................

If you find difficulties in submitting manuscript please forward your doc file to support@thejournalofbusiness.org. Our support team will assist you in submission process and other technical matters.

In order to get notifications on inbox please add  this domain thejournalofbusiness.org in your email safe list.

International journal of business and social research (Print)
ISSN 2164-2540

International journal of business and social research (Online)
ISSN 2164-2559

[International Journal of Business and Social Research (IJBSR) previously published by MIR Center for Socio-Economic Research, MD, USA. From February 2018 this journal is published by the LAR Center Press, OR, USA]