The Effect of Customer Co-development on Firm Value

다국어 초록 (Multilingual Abstract)

Customer participation is a strategic tool to facilitate the process of developing new products. This study distinguishes between two types of customer participation – customer codevelopment and contract development, and examines the benefits of customer codevelopment relative to contract development for firm value through an event study. The analysis of customer participation announcements in the biotechnology and pharmaceutical industries shows that the benefits of customer codevelopment relative to contract development on firm value are contingent upon firm- and relationship- level factors. Specifically, this study finds that the announcement of customer codveloplment contributes better to abnormal stock returns of a firm when the firm has a higher level of R&D relationship experience or when the customer codevelpment is complemented by formal contract terms, such as equity investment. The findings of this study provide important theoretical and managerial implications by revealing the boundary conditions for the benefits of customer codevelopment relative to contract development.

참고문헌 (Reference)

1 Park, Seung Ho, "When Competition Eclipses Cooperation: An Event History Analysis of Joint Venture Failure" 42 (42): 875-890, 1996

2 Pisano, Gary P., "Using Equity Participation to Support Exchange: Evidence from the Biotechnology Industry" 5 (5): 109-126, 1989

3 Brown, S.J., "Using Daily Stock Returns" 14 : 3-31, 1985

4 Killing, J.P., "Understanding Alliances: The Role of Task and Organizational Complexity. in: Cooperative Strategies in International Business" Lexington Books 1988

5 Hansen, Morten T., "The Search-Transfer Problem: The Role of Weak Ties in Sharing Knowledge across Organization Subunits" 44 (44): 82-111, 1999

6 Dyer, Jeffrey H., "The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage" 23 (23): 660-679, 1998

7 Rothaermel, Frank T., "The Nanotech Versus the Biotech Revolution: Sources of Productivity in Incumbent Firm Research" 36 (36): 832-849, 2007

8 Ahuja, Gautam, "The Duality of Collaboration: Inducements and Opportunities in the Formation of Interfirm Linkages" 21 (21): 317-343, 2000

9 Anderson, Erin, "The Dark Side of Close Relationships" 46 (46): 75-82, 2005

10 Gulati, Ranjay, "The Architecture of Cooperation: Managing Coordination Costs and Appropriation Concerns in Strategic Alliances" 43 (43): 781-814, 1998

11 Rindfleisch, Aric, "The Acquisition and Utilization of Information in New Product Alliances: A Strength-of-Ties Perspective" 65 (65): 1-18, 2001

12 Gulati, Ranjay, "Strategic Networks" 21 (21): 203-215, 2000

13 Bonner, Joseph M., "Selecting Influential Business-to-Business Customers in New Product Development: Relational Embeddedness and Knowledge Heterogeneity Considerations" 21 (21): 155-169, 2004

14 Rogers, William, "Regression Standard Errors in Clustered Samples" 13 : 19-23, 1993

15 Teece, David J., "Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy" 15 (15): 285-305, 1986

16 Wuyts, Stefan, "Portfolios of Interfirm Agreements in Technology- Intensive Markets: Consequences for Innovation and Profitability" 68 : 88-100, 2004

17 Sampson, Rachelle C., "Organizational Choice in R&D Alliances: Knowledge-Based and Transaction Cost Perspective" 25 : 421-436, 2004

18 Swaminathan, Vanitha, "Marketing Alliances, Firm Networks, and Firm Value Creation" 73 (73): 52-69, 2009

19 Zander, Udo, "Knowledge and the Speed of the Transfer and Imitation of Organizational Capabilities: An Empirical Test" 6 : 76-92, 1995

20 Winter, Sidney G., "Knowledge and Competence as Strategic Assets. in: The Competitive Challenge" Ballinger 1987

21 Powell, Walter W., "Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology" 41 : 116-145, 1996

22 Lee, Choonwoo, "Internal Capabilities, External Networks, and Performance: A Study on Technology- Based Ventures" 22 : 615-640, 2001

23 Li, Ning, "General Alliance Experience, Uncertainty, and Marketing Alliance Governance Mode Choice" 38 (38): 141-158, 2010

24 Westney, E., "Domestic and Foreign Learning Curves in Managing International Cooperative Strategies. in: Cooperative Strategies in International Business" Lexington Books 1988

25 Anand, Bharat N., "Do Firms Learn to Create Value: The Case of Alliances" 21 (21): 295-315, 2000

26 Fang, Eric, "Customer Participation and the Trade-Off between New Product Innovativeness and Speed to Market" 72 (72): 90-, 2008

27 Houston, Mark B., "Buyer-Supplier Contracts Versus Joint Ventures: Determinants and Consequences of Transaction Structure" 37 (37): 1-15, 2000

28 Dussauge, Pierre, "Asymmetric Performance: The Market Share Impact of Scale and Link Alliances in the Global Auto Industry" 25 (25): 701-711, 2004

29 Kalaignanam, Kartik, "Asymmetric New Product Development Alliances: Win-Win or Win-Lose Partnerships?" 53 (53): 357-374, 2007

30 Oxley, Joanne E., "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach" 13 (13): 387-409, 1997

31 Sivadas, Eugene, "An Examination of Organizational Factors Influencing New Product Success in Internal and Alliance-Based Processes" 64 : 31-49, 2000

32 Gulati, R., "Alliances and Networks" 19 (19): 293-317, 1998

33 Lavie, Dovev, "Alliance Portfolio Internationalization and Firm Performance" 19 (19): 623-646, 2008

34 Kale, Prashant, "Alliance Capability, Stock Market Response, and Long Term Alliance Success: The Role of the Alliance Function" 23 (23): 747-767, 2002

35 Cohen, Wesley M., "Absorptive Capacity: A New Perspective on Learning and Innovation" 35 (35): 128-152, 1990

36 Nickerson, Jack A., "A Knowledge-Based Theory of the Firm-the Problem-Solving Perspective" 15 (15): 617-632, 2004

37 Jap, Sandy D., "'Pie-Expansion' Efforts: Collaboration Processes in Buyer-Supplier Relationships" 36 (36): 461-475, 1999