Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Published by: University of California, Berkeley
Published in: "California Management Review", 2004

Abstract

Although there has been an explosion in the number of technology sourcing relationships between firms - including alliances, acquisitions, and all intermediate levels of equity ownership - managers lack a comprehensive framework to guide them in equity ownership decisions meant to access technology. Higher levels of equity ownership can provide benefits such as exclusive access to and control over critical resources, alignment of interests between partners, and better coordination and control of partner interaction. On the other hand, equity ownership also entails costs associated with implementing changes to organizational structures, in addition to lower employee motivation as well as commitment costs due to market or technological uncertainty.

About

Abstract

Although there has been an explosion in the number of technology sourcing relationships between firms - including alliances, acquisitions, and all intermediate levels of equity ownership - managers lack a comprehensive framework to guide them in equity ownership decisions meant to access technology. Higher levels of equity ownership can provide benefits such as exclusive access to and control over critical resources, alignment of interests between partners, and better coordination and control of partner interaction. On the other hand, equity ownership also entails costs associated with implementing changes to organizational structures, in addition to lower employee motivation as well as commitment costs due to market or technological uncertainty.

Related