Journals A-Z
All Subjects
Free Journals
sciepub.com
Journal of Finance and Economics
ISSN (Print): 2328-7284 ISSN (Online): 2328-7276 Website: https://www.sciepub.com/journal/jfe Editor-in-chief: Suman Banerjee
Open Access
Journal Browser
Go
Issue 5, Volume 2
Article Metrics
  • 30590
    Views
  • 25154
    Saves
  • 7
    Citations
  • 55
    Likes
Export Article
Journal of Finance and Economics. 2014, 2(5), 185-193
DOI: 10.12691/jfe-2-5-9
Open AccessArticle

R&D Cooperation and Firm Performance – Evaluation of Partnering Strategies in the Automotive Industry

David Elvers1 and Chie hoon Song1,

1Institute of Business Administration at the Department of Chemistry and Pharmacy, University of Muenster, Muenster, Germany

Pub. Date: September 28, 2014
View Full Text Full Text PDF (275 KB) Full Text ePUB(200 KB)

Cite this paper:
David Elvers and Chie hoon Song. R&D Cooperation and Firm Performance – Evaluation of Partnering Strategies in the Automotive Industry. Journal of Finance and Economics. 2014; 2(5):185-193. doi: 10.12691/jfe-2-5-9

Abstract

The importance of R&D cooperation has been recognized as a consequence of growing complexity, dynamism of the environment, increasing risks and escalating costs of innovation. Collaboration with firms and academic institutions enables organizations to exploit external resources and competencies not available internally and adding additional value to the in-house ideas. Despite the large number of publications related to R&D cooperation, empirical studies on the impact of firm’s strategic partnering on firm performances are rather scarce. Thus, the goal of this paper is to contribute to the existing literature by discussing the strategic behavior of firms derived from the patent co-ownership network in order to establish a link between the variety of close relationships and the number of sold products. This paper discusses the influence of different strategic directions on firm performance, whereby the impact of uncertainty regarding the future technology development and the market acceptance is specifically high. First, the starting point is the analysis of co-patenting structure in the field automotive industry using patents related to lithium-ion batteries. This study investigates the characteristics of each resulting cluster derived from the collaboration network and then explores the heterogeneities of R&D collaboration strategies differentiating between three types of strategic partnering: doing-it-alone, concentration on single partners and open partnering. Second, analysis is undertaken to establish an empirical linkage between the strategic partnering behavior and the number of sold electric vehicles. The results indicate that there is no direct causal link between the intensity of the cooperation and performance.

Keywords:
R&D cooperation strategic behavior patent co-ownership

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References:

[1]  Anderson, J. C.; Narus, J. A. (1990): A Model of Distributor Firm and Manufacturer Firm Working Partnerships, in: Journal of Marketing, Vol.54, No. 1, p. 42-58.
 
[2]  Ansoff, H. I. (1965): Checklist for Competitive and Competence Profiles; in Ansoff, H. I. (ed.): Corporate Strategies, New York: McGraw-Hill, p. 89-99.
 
[3]  Barney, Jay (1991): Firm Resources and Sustained Competitive Advantage, in: Journal of Management, Vol. 17, 1, p. 99-120.
 
[4]  Becker, W.; Dietz, J. (2004): R&D cooperation and innovation activities of firms – evidence for the German manufacturing industry, in: Research Policy, Vol. 33, p. 209-223.
 
[5]  Belderbos, R.; Cassiman, B.; Faems, D.; Leten, B.; Van Looy, B. (2013): Co-ownership of intellectual property: Exploring the value-appropriation and value-creation implications of co-patenting with different partners, Paper presented at the 35th DRUID Celebration Conference 2013, Barcelona, Spain, 17-19 June.
 
[6]  Belderbos, R.; Faems, D.; Leten, B.; Van Looy, B. (2010): Technological Activities and Their Impact on the Financial Performance of the Firm: Exploitation and Exploration within and between Firms, in: Journal of Product Innovation Management, Vol. 27, p. 869-882.
 
[7]  Bensaou, M. (1997): Interorganizational Cooperation: The Role of IT, in: Information Systems Research, Vol. 8, 2, p. 107–124.
 
[8]  Brown, S.; Pyke, D.; Steenhof, P. (2010): Electric vehicles: the role and importance of standards in an emerging market, in: Energy Policy, Vol.38, p. 3797-3806.
 
[9]  Buckley, P. J.; Casson, M. C. (1988): A theory of cooperation in international business, in: Contractor, F. J.; Lorange, P. (eds.): Cooperative strategies in international business: Joint ventures and technology partnerships between firms, Lexington, MA: Lexington Books, p. 31-54.
 
[10]  Cao, M.; Zhang, Q. (2010): Supply chain collaborative advantage: a firm’s perspective, in: International Journal of Production Economics, Vol.128, 1, p. 358-367.
 
[11]  Chesbrough, H. W. (2003): The Era of Open Innovation, in: MIT Sloan Management Review, Vol. 44, 3, p. 35-41.
 
[12]  Cheung, M.; Myers, M. B.; Mentzler, J. T. (2010): Does relationship learning lead to relationship value? A cross-national supply chain investigation, in: Journal of Operations Management, Vol.28, p. 472-487.
 
[13]  Chugan, P.K. (1995): R&D Thrust in Developing Countries - A Case of Indian Automobile Ancillary Industry, in:NMIMS Management Review, Vol.7, No.2, p. 50-67.
 
[14]  Clark, K. B.; Fujimoto, T. (1989): Lead Time in Automobile Product Development – Explaining the Japanese Advantage, in: Journal of Engineering and Technology Management, Vol.6, p. 25-58.
 
[15]  Combs, J. G.; Ketchen Jr., D. J. (1999): Explaining Interfirm Cooperation and Performance: Toward a Reconciliation of Predictions from the Resource-Based View and Organizational Economics, in: Strategic Management Journal, Vol.20, 9, p. 867-888.
 
[16]  Curran, S.; Leker, J. (2011): Patent indicators for monitoring convergence – Examples from NFF and ICT, in: Technological Forecasting and Social Change, 78 (2), p. 256-273.
 
[17]  Cusumano, M. A.; Takeishi, A. (1991): Supplier Relations and Management: A Survey of Japanese, Japanese- Transplant, and U.S. Auto Plants, in: Strategic Management Journal, Vol. 12, 8, p. 563-588.
 
[18]  Das, T. K.; Teng, B. S. (1998): Resource and Risk Management in the Strategic Alliance Making Process, in: Journal of Management, Vol. 24, 1, p. 21-42.
 
[19]  Day, G. (1994): The capabilities of market-driven Organizations, in: Journal of Marketing, Vol. 58, 4, p. 37-52.
 
[20]  Devlin, G.; Bleackley, M. (1988): Strategic Alliances Guidelines for success, in: Long Range Planning, Vol. 21, 5, p. 18-23.
 
[21]  Droge, C.; Jayaram, J.; Vickery, S. K. (2004): The effects of internal versus external integration practices on time-based performance and overall firm performance, in: Journal of Operations Management, Vol. 22, p. 557-573.
 
[22]  Dyer, J. H.; Chu, W. (2003): The Role of Trustworthiness in Reducing Transaction Costs and Improving Performance: Empirical Evidence from the United States, Japan, and Korea, in: Organization Science, Vol. 14, 1, p. 57-68.
 
[23]  Dyer, J. H.; Singh, H. (1998): The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage, in: The Academy of Management Review, Vol. 23, 4, p. 660-679.
 
[24]  Dyer, J. H; Ouchi, W. G. (1993): Japanese style partnerships: Giving companies a competitive edge, in: Sloan Management Review; Vol. 35, 1, p. 51-63.
 
[25]  Dyer, J. H. (1997): Effective interfirm collaboration: How firms minimize transaction costs and maximize transaction value, in: Strategic Management Journal, Vol. 18, p. 535-556.
 
[26]  Eisenhardt, K. M.; Martin, J. A. (2000): Dynamic capabilities: What are they?, in: Strategic Management Journal, Vol. 21, 10-11, p. 1105-1122.
 
[27]  Eisenhardt, K. M.; Schoonhoven, C. B. (1996): Resource-based view of strategic alliance formation: Strategic and social effects of entrepreneurial firms, in:Organizational Science, Vol. 7, p. 136-150.
 
[28]  Faems, D.; Van Looy, B.; Debackere, K. (2005): Interorganizational Collaboration and Innovation: Toward a Portfolio Approach, in: Journal of Product Innovation Management, Vol. 22, 3, p. 238-250.
 
[29]  Fliess, S.; Becker, U. (2006): Supplier integration—Controlling of co-development processes, in: Industrial Marketing Management, Vol. 35, p. 28-44.
 
[30]  Flynn, B. B.; Huo, B.; Zhao, X. (2010): The impact of supply chain integration on performance: A contingency and configuration approach, in: Journal of Operations Management, Vol. 28, p. 58-71.
 
[31]  Flynn, P. C. (2002): Commercializing an alternate vehicle fuel: lessons learned from natural gas for vehicles, in: Energy Policy, Vol.30, p.613–619.
 
[32]  Freeman, L. C. (1979): Centrality in Social Networks Conceptual Clarification, in: Social Networks, Vol. 1, p. 215-239.
 
[33]  Gatignon, H.; Robertson, T. S. (1989): Technology diffusion: an empirical test of competitive effects, in: Journal of Marketing, Vol. 53, 1, p. 35-49.
 
[34]  Gemünden, H. G.; Ritter, T.; Heydebreck, P. (1996): Network configuration and innovation success: An empirical analysis in German high-tech industries, in:International Journal of Research in Marketing, Vol. 13, 5, p. 449-462.
 
[35]  Giuri, Paola; Mariani, Myriam; Brusoni, Stefano; Crespi, Gustavo; Francoz, Dominique; Gambardella, Alfonso; Garcia-Fontes, Walter; Geunac, Aldo; Gonzales, Raul; Harhoff, Dietmar; Hoisl, Karin; Le Bas, Christian; Luzzi, Alessandra; Magazzini, Laura; Nesta, Lionel; Nomaler, Önder; Palomeras, Neus; Patel, Pari; Romanelli, Marzia; Verspagen, Bart (2007): Inventors and invention processes in Europe: Results from the PatVal-EU survey, in: Research Policy, Vol. 36, p. 1107-1127.
 
[36]  Grant, R. M.; Baden-Fuller, C. (2004): A Knowledge Accessing Theory of Strategic Alliances, in: Journal of Management Studies, Vol. 41, 1, p. 61-84.
 
[37]  Gruner, K. E.; Homburg, C. (2000): Does Customer Interaction Enhance New Product Success?, in: Journal of Business Research, Vol. 49, p. 1-14.
 
[38]  Haeussler, C.; Patzelt, H.; Zahra, S. A. (2010): Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities, in: Journal of Business Venturing, Vol. 27, 2, p. 217-233.
 
[39]  Hagedoorn, J. (1993): Understanding the rationale of strategic technology partnering: Interorganizational modes of cooperation and sectoral differences, in: Strategic Management Journal, Vol. 14, p. 371-385
 
[40]  Hagedoorn, J. (2002): Inter-firm R&D partnership: An overview of major trends and patterns since 1960, in: Research Policy, Vol. 31, p. 477-492.
 
[41]  Hagedoorn, J.; Narula, R. (1996): Choosing Organizational Modes of Strategic Technology Partnering: International Sectoral Differences, in: Journal of International Business Studies, Vol. 27, 2, p. 265-284.
 
[42]  Hagedoorn, John (2003): Sharing intellectual property rights – an exploratory analysis of joint patenting among companies, in: Industrial and Corporate Change, Vol. 12, 5, p. 1035-1050.
 
[43]  Handfield, R. B. (1993): A resource dependence perspective of Just-in-Time purchasing, in: Journal of Operations Management, Vol. 11, p. 289-311.
 
[44]  Haythornthwaite, C. (1996): Social Network Analysis: An approach and Technique for the study of Information Exchange, in: Library & Information Science Research, Vol. 18, p. 323-342.
 
[45]  Hess, A. M.; Rothaermel, F. T. (2011): When are assets complementary? Star scientists, strategic alliances, and innovation in the pharmaceutical industry, in: Strategic Management Journal, Vol. 32, p. 895-909.
 
[46]  Jiang, Z.; Jain, D. C. (2012): A Generalized Norton–Bass Model for Multigeneration Diffusion, in: Management Science, Vol. 58, 10, p. 1887-1897.
 
[47]  Klioutch, I.; Leker, J. (2011): Supplier involvement in customer new product development: New insights from the supplier’s perspective, in: International Journal of Innovation Management, Vol. 15, 1, p. 231-248.
 
[48]  Koufteros, X. A.; Vonderembse, M.; Jayaram, J. (2005): Internal and external integration for product development: the contingency effects of uncertainty, equivocality, and platform strategy, in: Decision Sciences, Vol. 36, 1, p. 97-133.
 
[49]  Kuester, S.; Gatignon, H.; Robertson, T. S. (2000): Firm Strategy and Speed of Diffusion, in Mahajan, V.; Muller, E.; Wind, Y. (ed.): New Product Diffusion Models, Boston: Kluwer, p. 27-48.
 
[50]  Li, T.; Calantone, R. J. (1998): The Impact of Market Knowledge Competence on New Product Advantage: Conceptualization and Empirical Examination, in: Journal of Marketing, Vol. 62, 4, p. 13-29.
 
[51]  Maijoor, S., van Witteloostuijn, A. (1996): An empirical test of the re-source-based theory: Strategic regulation in the Dutch audit industry, in: Strategic Management Journal, Vol. 17, 7, p. 549-569.
 
[52]  Maloni, M.; Benton, W. C. (2000): Power influence in the supply chain, in: Journal of Business Logistics, Vol. 21, 1, p. 49-73.
 
[53]  Meade, N.; Islam, T. (2006): Modelling and forecasting the diffusion of innovation – A 25-year review, in: InternationalJournal of Forecasting, Vol. 22, p. 519-545.
 
[54]  Morgan, R. M.; Hunt, S. D. (1994): The Commitmment – Trust Theory of Relationship Marketing, in: Journal of Marketing, Vol. 58, 3, p. 20-38.
 
[55]  Mowery, D. C.; Oxley, J. E.; Silverman, B. S. (1998): Technological overlap and interfirm cooperation: implications for the resource-based view of the firm, in: Research Policy, Vol. 27, p. 507-523.
 
[56]  O’Reilly III, C. A.;Tushman, M. L. (2008): Ambidexterity as a dynamic capability: Resolving the innovator’s dilemma. Research in Organizational Behavior 28 (2008) 185-206.
 
[57]  Parkhe, A. (1993): Strategic Alliance Structuring: A Game Theoretic and Transaction Cost Examination of Interfirm Cooperation, in: The Academy of Management Journal, Vol. 36, 4, p. 794-829.
 
[58]  Perks, H.; Jeffery, R. (2006): Global network configuration for innovation: a study of international fiber innovation, in: R&D Management Journal, Vol. 36, 1, p. 67-83.
 
[59]  Powell, T. C. (1992): Strategic planning as competitive advantage, in: Strategic Management Journal, Vol. 13, p. 551-558.
 
[60]  Rogers, E. M. (2003): Diffusion of Innovations, 5. Edition, New York et al.: Free Press.
 
[61]  Rothaermel, F. T. (2001): Complementary assets, strategic alliances, and the incumbent’s advantage: an empirical study of industry and firm effects in the biopharmaceutical industry, in: Research Policy, Vol. 30, p. 1235-1251.
 
[62]  Schumpeter, J. (1934): The Theory of Economic Development, Cambridge, MA: Harvard University Press.
 
[63]  Song, W.; Ming, X.; Xu, Z. (2013): Risk evaluation of customer integration in new product development under uncertainty, in: Computers & Industrial Engineering, Vol. 65, p. 402-412.
 
[64]  Stoneman, P. (1983): The Economic Analysis of Technological Change, New York: Oxford University Press.
 
[65]  Teece, D. J.; Pisano, G.; Shuen, A. (1997): Dynamic capabilities and strategic management, in: Strategic Management Journal, Vol. 18, 7, p. 509-533.
 
[66]  Veugelers, R.; Cassiman, Bruno. (2005): R&D cooperation between firms and universities. Some empirical evidence from Belgian manufacturing, in: International Journal of Industrial Organization, Vol. 23, p. 355-379.
 
[67]  Vickery, S. K.; Jayaram, J.; Droge, C.; Calantone, R. (2003): The effects of an integrative supply chain strategy on customer service and financial performance: an analysis of direct versus indirect relationships, in: Journal of Operations Management, Vol. 21, p. 523-539.
 
[68]  Wagner, R., Preschitschek, N., Passerini, S., Leker, J., Winter, M. (2013): Current research trends and prospects among the various materials and designs used in lithium-based batteries, in: Journal of Applied Electrochemistry, Vol. 43, p. 481-496.
 
[69]  Wernerfelt, B. (1984): A Resource-based View of the Firm, in: Strategic Management Journal, Vol. 5, 2, p. 171-180.
 
[70]  Whipple, J. M.; Frankel, R. (2000): Strategic Alliance Success Factors, in: Journal of Supply Chain Management, Vol. 36, 2, p. 21-28.
 
[71]  Yang, L.; Xu, J.; Neuhäusler, P. (2013): Electric vehicle technology in China: An exploratory patent analysis, in: World Patent Information, Vol. 35, p. 305-312.
 
Manuscript template