TECHNOLOGY DEVELOPMENT MODE - A TRANSACTION COST CONCEPTUALIZATION

Technology alliances have emerged in the past decade as a significant mode for the development of innovation. The present research assesses the factors explaining whether firms will engage in such technology al liances or utilize the more traditional mode of internal R&D. The hypo theses stem from a transaction cost conceptualization. Results suggest that firms which pursue technology alliances are likely to have less commitment to product category-specific assets, to face higher technol ogical uncertainty, to be more capable at measuring innovation perform ance, to have more successful technology alliance experiences, and to compete in lower growth product categories. (C) 1998 John Wiley & Sons , Ltd.