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How knowledge attributes influence alliance governance choices: A theory development note

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  • Contractor, Farok J.
  • Ra, Wonchan

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.

Suggested Citation

  • Contractor, Farok J. & Ra, Wonchan, 2002. "How knowledge attributes influence alliance governance choices: A theory development note," Journal of International Management, Elsevier, vol. 8(1), pages 11-27.
    • Handle: RePEc:eee:intman:v:8:y:2002:i:1:p:11-27
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    13. Wonchan Ra, 2008. "A Framework for the Choice of Compensation Types in Foreign Knowledge Acquisition through Strategic Alliances between Firms," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 11(2), pages 309-331, September.
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    15. Nicolai J. Foss, 2006. "The Emerging Knowledge Governance Approach Challenges and Characteristics," DRUID Working Papers 06-10, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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