Collaborative Research (CR) as a reduced transaction cost in Open Innovation

In this conceptual paper, open innovation is considered from the point of view of collaboration between industry and academy. However, if considered under the framework of the Resource Based Theory, specifically regarding Transaction Cost, it can be shown that the two phenomena are in fact compatible. The discussion regarding Transaction Cost is focused mainly on the management resources available for the activity and the cost incurred as alternative cost compared to other activities the management could engage in, especially regarding the nexus of Industry-Academy collaboration. SMEs faced with the ever increasing stress of intensive competition and limited by their resources in their abilities to deal with it effectively turn to collaboration as a solution. The discussion synthesizes two articles recently published as chapters in books (Porath, 2012a; Porath, 2012b) analyzing collaboration as an open innovation activity within the Resource Based Theory

Collaborative Research (CR) as a Reduced Transaction Cost in Open Innovation

In this conceptual paper, open innovation is considered from the point of view of collaboration between the Industry and the Academy. However, if considered under the framework of the Resource Based Theory, specifically regarding Transaction Cost, it can be shown that the two parties (Industry and Academy) are in fact compatible. The discussion on Transaction Cost is mainly focused on the aspect of the management resources available for the activity and the cost incurred compared to alternative management activities. It has been observed that small and medium enterprises (SMEs) are faced with the ever increasing stress of intensive competition and limited by their resources (e.g. managerial capabilities, financial etc.) in their abilities to deal with the transaction cost, and thus effectively turn to collaboration as a solution. The discussion synthesizes aspects of open innovation based on a theoretical model and a case study of the User Association of Advanced Technologies program in Israel, and emphasizes on collaboration as an open innovation activity within the Resource Based Theory. It further concludes that collaborative research reduced the transaction cost in terms of utilizing open innovation in entrepreneurships, especially in case of SMEs, before providing a few research hints. The research piggybacks on the acquired knowledge on open innovation and thus strengthens further the concept of reduction of transaction cost through collaborative research

Gains and Pains from Contract Research: A Transaction and Firm-level Perspective

Determining the research and development (R&D) boundaries of the firm as the choice between internal, collaborative and external technology acquisition has since long been a major challenge for firms to secure a continuous stream of innovative products or processes. While research on R&D cooperation or strategic alliances is abundant, little is known about the outsourcing of R&D activities to contract research organizations and its implications for innovation performance. This paper investigates the driving forces of external technology sourcing through contract research based on arguments from transaction cost theory and the resource-based view of the firm. Using a large and comprehensive data set of innovating firms from Germany our findings suggest that technological uncertainty, contractual experience and openness to external knowledge sources motivate the choice for engaging in contract research activities. Moreover, we show that internal and external R&D sourcing are complements: the marginal contribution of internal (external) R&D is the larger the more firms spend on external (internal) R&D. --Contract research,innovation,transaction cost theory,firm capabilities

Gains and Pains from Contract Research: A Transaction and Firm-level Perspective

Determining the research and development (R&D) boundaries of the firm as the choice between internal, collaborative and external technology acquisition has since long been a major challenge for firms to secure a continuous stream of innovative products or processes. While research on R&D cooperation or strategic alliances is abundant, little is known about the outsourcing of R&D activities to contract research organizations and its implications for innovation performance. This paper investigates the driving forces of external technology sourcing through contract research based on arguments from transaction cost theory and the resource-based view of the firm. Using a large and comprehensive data set of innovating firms from Germany our findings suggest that technological uncertainty, contractual experience and openness to external knowledge sources motivate the choice for engaging in contract research activities. Moreover, we show that internal and external R&D sourcing are complements: the marginal contribution of internal (external) R&D is the larger the more firms spend on external (internal) R&D.contract research, innovation; transaction cost theory; firm capabilities

Understanding collaborative supply chain relationships through the application of the Williamson organisational failure framework

Many researchers have studied supply chain relationships however, the preponderance of open markets situations and ‘industry-style’ surveys have reduced the empirical focus on the dynamics of long-term, collaborative dyadic relationships. Within the supply chain the need for much closer, long-term relationships is increasing due to supplier rationalisation and globalisation (Spekman et al, 1998) and more information about these interactions is required. The research specifically tested the well-accepted Williamson’s (1975) Economic Organisations Failure Framework as a theoretical model through which long term collaborative relationships can be

Gains and pains from contract research : a transaction and firm-level perspective

Determining the research and development (R&D) boundaries of the firm as the choice between internal, collaborative and external technology acquisition has since long been a major challenge for firms to secure a continuous stream of innovative products or processes. While research on R&D cooperation or strategic alliances is abundant, little is known about the outsourcing of R&D activities to contract research organizations and its implications for innovation performance. This paper investigates the driving forces of external technology sourcing through contract research based on arguments from transaction cost theory and the resource-based view of the firm. Using a large and comprehensive data set of innovating firms from Germany our findings suggest that technological uncertainty, contractual experience and openness to external knowledge sources motivate the choice for engaging in contract research activities. Moreover, we show that internal and external R&D sourcing are complements: the marginal contribution of internal (external) R&D is the larger the more firms spend on external (internal) R&D

Investigating key factors influence supply chain collaborative relationship and risk management in Chinese SMEs

A thesis submitted to the University of Bedfordshire, in fulfilment of the requirements for the degree of Doctor of PhilosophyThe sustainability of small and medium-sized enterprises (SMEs) makes a significant contribution to job position and economic growth in China. However, SMEs face various challenges and uncertainties in the Chinese business environment. This study proposes a practical approach for Supply Chain Collaborative Relationship (SCCR) building to mediate adverse impacts from supply chain risks through leveraging partners’ critical resources. The Resource-based View (RBV) and Transaction Cost Economics (TCE) are employed in line with theoretical structure building in this study. Theories of Guanxi, collaborative advantage, and risk management have also been used. A combination of qualitative and quantitative research (Mixed-Method Research) approaches are employed in the study. The investigation starts with a sample of 5 research participants from executives of Chinese SMEs using qualitative research; its results are further elaborated using a subsequent survey of 216 SMEs. Data is analyzed via thematic approach (qualitative results) and the combination of SEM and CFA modeling (quantitative results). Results show the building of SCCR contributes to highly functional and stable alliances in Chinese SMEs, which has significant influences in motivating partners’ willingness to share risks and resources to support supply chain risk management. This study furthermore manifests that building of SCCR should depend on either interpersonal and inter-organizational level interactions, while interpersonal relationships between executives has significant influence to SCCR development

Standard setting and competition in securities settlement

This paper examines the impact of messaging and technical standards on competition in the supply of se-curities transaction management services. Two simple switching cost models are used to clarify the im-pact of standards on barriers to entry and on the incentives to adopt harmonised and simplified securities processing standards. Policy implications are discussed briefly.securities settlement; standards; inter-operability; switching costs

Boundary considerations and joint learning in knowledge-intensive R&D collaboration

Tämän väitöstutkimuksen tarkoituksena on pyrkiä ymmärtämään kuinka organisaatiorajateoriat selittävät teknologiayritysten tutkimus- ja kehitys (T&K) -toiminnan jakautumista yritysten sisäiseen ja kumppaneille ulkoistettuun työhön. Lisäksi työssä tutkitaan näissä suhteissa tapahtuvaa oppimista ja sen vaikutusta yritysrajojen muodostumiseen. Työ koostuu neljästä artikkelista. Ensimmäinen artikkeli analysoi T&K-työn organisoitumista teknologiayrityksen toimittajasuhteissa käyttäen teoreettisena viitekehyksenään neljää yleisesti tunnettua organisaatiorajateoriaa, jotka ovat kompetenssi, tehokkuus, voima ja identiteetti. Toinen artikkeli keskittyy yhdessä oppimiseen T&K-yhteistyössä, johon osallistuu sekä yrityksen sisäisiä että ulkoisia kumppaneita. Artikkeleista kolmannen tarkoituksena on varmentaa ensimmäisen artikkelin johtopäätös kompetenssin ja tehokkuuden keskinäisestä positiivisesta yhteydestä T&K-yhteistyössä, ja yhdessä oppimisen vaikutuksesta tähän yhteyteen. Neljäs artikkeli esittelee käytännön päätöstyökalun, jonka tarkoituksena on auttaa T&K-organisaatioita tekemään rationaalisia päätöksiä työn organisoimisesta sisäiseen ja ulkoistettuun työhön. Väitöstutkimuksen tulokset osoittavat, että organisaatiorajojen muodostumiseen käytännön tuotekehitysyhteistyössä liittyy eri tyyppisiä suhdetason mekanismeja. Yksittäiset organisaatiorajateoriat eivät yleensä riitä selittämään rajojen muodostumista, koska teoriat liittyvät toisiinsa ja niiden keskinäiset riippuvuudet muuttuvat ja kehittyvät pitkäaikaisen yhteistyön kuluessa. Erityisesti suhteessa tapahtuva yhdessä oppiminen vaikuttaa tähän kehitykseen. Yhdessä oppiminen lisäksi edistää yhteistyössä luodun uuden tiedon hyödyntämistä yhteistyösuhteen sisällä.Building on the theories of R&D collaboration, organizational boundaries, and relational joint learning, this dissertation seeks to contribute empirically to this research arena by answering the following research question: How do organizational boundary explanations interplay and coevolve in long-term collaboration partnerships and how does relational joint learning facilitate that development? This dissertation is composed of four interconnected articles. The first article analyzes the interplay of four organizational boundary theories (competence, efficiency, power, and identity) within the R&D supplier network of a global technology firm. In the second article, the theory of relational joint learning is analyzed in a case study examining relationships between a technology organization and its internal and external R&D partnerships. The third article validates a key result of the first article by means of quantitative research by showing that the relationship between competence and efficiency of R&D relationships is positive and mediated by joint learning. The fourth article introduces a managerial tool intended to support R&D organizations in their outsourcing and partner selection tasks. The results indicate that there is an extensive set of relational practices and mechanisms that explain the boundary formation between technology organizations and their R&D suppliers. The results also suggest that the organizational boundary theories investigated in this dissertation are connected to each other and coevolve in long-term R&D partnerships. Relational joint learning in particular is able to facilitate this development, and also facilitates the utilization of the jointly developed knowledge in the relationships

The Impact of Cloud Computing in Supply Chain Collaborative Relationships, Collaborative Advantage and Relational Outcomes

The purpose of this study is to explore the collaborative advantages and relational outcomes that organizations obtain from having strong collaborative relationships. With business competing as supply chains of multiple relationships, the reliance on inter-firm relationships has increased and become central strategy for organizations. Logistics computing technologies in the cloud may facilitate collaboration in the supply chain, although there are conflicting viewpoints regarding cloud viability. This study also evaluates the effect that cloud computing technology has on collaborative advantage and relational outcomes in small and large organizations. The model developed here is based on a cross-disciplinary theoretical perspective, which combines the relational view of the firm, the transaction cost economics and the task technology fit theories. This study demonstrates that maintaining collaborative relationships provide value added capabilities that logistics organizations require in order to remain competitive and be successful in some cases strengthen by the use of cloud computing