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The Many Facets of Uncertainty and the Structure of Cooperation

In: Management Of Technology Innovation And Value Creation Selected Papers from the 16th International Conference on Management of Technology

Author

Listed:
  • Hanna Kuittinen

    (Lappeenranta University of Technology, School of Business, P. O. Box 20, Lappeenranta, FIN-53851, Finland)

  • Ari Jantunen

    (Lappeenranta University of Technology, School of Business, P. O. Box 20, Lappeenranta, FIN-53851, Finland)

  • Kalevi Kyläheiko

    (Lappeenranta University of Technology, School of Business, P. O. Box 20, Lappeenranta, FIN-53851, Finland)

  • Jaana Sandström

    (Lappeenranta University of Technology, School of Business, P. O. Box 20, Lappeenranta, FIN-53851, Finland)

Abstract

This paper considers uncertainty as a significant determinant of the structure of cooperation. In the early phase of industrial development, there are many possibilities as to how the industry can evolve in terms of technological opportunities. The rise of technological standards and dominant designs narrow the range of technologies in use, hence decreasing radical uncertainty. Our hypothesis is that this evolvement has an effect on the choice of alliance governance mode. Following our uncertainty logic, we assume that the more mature an industry is, the less is the role of radical uncertainty and the more dominant is the role of parametric uncertainty, and vice versa. Our statistical analysis draws from three industries that are in different phases of development: (i) embryonic (biotechnology), (ii) developing (telecommunication equipment manufacturing), and (iii) mature (pulp and paper industry).

Suggested Citation

  • Hanna Kuittinen & Ari Jantunen & Kalevi Kyläheiko & Jaana Sandström, 2008. "The Many Facets of Uncertainty and the Structure of Cooperation," World Scientific Book Chapters, in: Mostafa Hashem Sherif & Tarek M Khalil (ed.), Management Of Technology Innovation And Value Creation Selected Papers from the 16th International Conference on Management of Technology, chapter 2, pages 21-35, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789812790545_0002
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