Arbeitspapier
Joint venture breakup and the exploration-exploitation trade-off
This paper explores the effect of a potential joint-venture breakup on the level of technology transfer in a set-up with exploration-exploitation trade-offs in the presence of time compression costs. We consider a joint-venture relationship between a technologically advanced multinational firm and a local firm operating in a developing economy where the ability to enforce contracts is weak, and the local firm can quit without penalties. The multinational firm has to consider the advantages and disadvantages of an intensive transfer of technology versus an extensive one. In response to the breakup incentives, the multinational firm reduces the intensity (lowering the pace) and opts for a more extensive transfer mode (longer duration of transfer), compared to the first best. The scheme is supported by a flow of side payments to encourage the local firm to stay longer. We show that a fall in time compression costs may increase or decrease the intensity of technology transfer, both in the first-best and in the second-best scenarios, depending on the nature of the saving in time-compression costs.
- Language
-
Englisch
- Bibliographic citation
-
Series: Nota di Lavoro ; No. 102.2009
- Classification
-
Wirtschaft
Multinational Firms; International Business
Organizational Behavior; Transaction Costs; Property Rights
Technological Change: Choices and Consequences; Diffusion Processes
Intellectual Property and Intellectual Capital
- Subject
-
Technology transfer
joint venture
absorptive capacity
time-compression cost
breakup of relationship
- Event
-
Geistige Schöpfung
- (who)
-
Van Long, Ngo
Soubeyran, Antoine
Soubeyran, Raphael
- Event
-
Veröffentlichung
- (who)
-
Fondazione Eni Enrico Mattei (FEEM)
- (where)
-
Milano
- (when)
-
2009
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Van Long, Ngo
- Soubeyran, Antoine
- Soubeyran, Raphael
- Fondazione Eni Enrico Mattei (FEEM)
Time of origin
- 2009
Other Objects (12)
Innovationsmanagement zwischen Exploration und Exploitation
Breakup-Girl
Medienunternehmen im Spannungsfeld zwischen Exploitation und Exploration
„Kommunikationsverantwortliche müssen beide Seiten, Exploitation und Exploration, verstehen.“
Human collective intelligence under dual exploration-exploitation dilemmas
Exploration versus exploitation in space, mind, and society
Exploitation, Altruism, and Social Welfare: An Economic Exploration
Active Learning for Object Classification : From Exploration to Exploitation
Balancing exploration and exploitation by creating organizational think tanks
Reinforcement Learning mit adaptiver Steuerung von Exploration und Exploitation
Cluster ambidexterity towards exploration and exploitation: Strategies and cluster management
The importance of exploration and exploitation innovation in emerging economies
Innovationsmanagement zwischen Exploration und Exploitation
Breakup-Girl
Medienunternehmen im Spannungsfeld zwischen Exploitation und Exploration
„Kommunikationsverantwortliche müssen beide Seiten, Exploitation und Exploration, verstehen.“
Human collective intelligence under dual exploration-exploitation dilemmas
Exploration versus exploitation in space, mind, and society
Exploitation, Altruism, and Social Welfare: An Economic Exploration
Active Learning for Object Classification : From Exploration to Exploitation
Balancing exploration and exploitation by creating organizational think tanks
Reinforcement Learning mit adaptiver Steuerung von Exploration und Exploitation
Cluster ambidexterity towards exploration and exploitation: Strategies and cluster management
The importance of exploration and exploitation innovation in emerging economies
Innovationsmanagement zwischen Exploration und Exploitation
Breakup-Girl
Medienunternehmen im Spannungsfeld zwischen Exploitation und Exploration
„Kommunikationsverantwortliche müssen beide Seiten, Exploitation und Exploration, verstehen.“
Human collective intelligence under dual exploration-exploitation dilemmas
Exploration versus exploitation in space, mind, and society
Exploitation, Altruism, and Social Welfare: An Economic Exploration
Active Learning for Object Classification : From Exploration to Exploitation
Balancing exploration and exploitation by creating organizational think tanks
Reinforcement Learning mit adaptiver Steuerung von Exploration und Exploitation
Cluster ambidexterity towards exploration and exploitation: Strategies and cluster management