In Harsh - and Slack Times: How Does Firm Performance Affect the Intensity and the Direction of External Technology Sourcing?

Posted: 18 Apr 2013

See all articles by Thomas Klueter

Thomas Klueter

University of Navarra - Entrepreneurship

L. Felipe Monteiro

INSEAD - Strategy

Date Written: April 18, 2013

Abstract

Despite our understanding of the importance of external technology sourcing, we know little about what leads firms to become more open to sourcing external technologies. To elucidate this question, we draw upon the behavioral theory of the firm, and propose that sourcing external technologies is sensitive to how managers evaluate organizational performance relative to aspirations. We develop several propositions linking whether a firm is in "harsh times" — i.e. performing below its aspiration level — or in "slack times" — i.e. performing above its aspiration level — to both the intensity and the direction of its search for external technologies. This paper not only sheds light into how performance affects a firm’s search for external technologies, but also reveals important boundary conditions that influence how a firm manages its broader set of R&D activities.

Suggested Citation

Klueter, Thomas and Monteiro, L. Felipe, In Harsh - and Slack Times: How Does Firm Performance Affect the Intensity and the Direction of External Technology Sourcing? (April 18, 2013). INSEAD Working Paper No. 2013/49/ST/ACGRE; IESE Business School Working Paper No. 04/2013. Available at SSRN: https://ssrn.com/abstract=2253207 or http://dx.doi.org/10.2139/ssrn.2253207

Thomas Klueter

University of Navarra - Entrepreneurship ( email )

United States

L. Felipe Monteiro (Contact Author)

INSEAD - Strategy ( email )

Boulevard de Constance
77305 Fontainebleau
France

Register to save articles to
your library

Register

Paper statistics

Abstract Views
593
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information