External knowledge sourcing for R&D activities: antecedents and implications of governance mode choice

This paper investigates how internal and external factors affect the choice between alliances and joint ventures (A&JVs) and mergers and acquisitions (M&As) for the external sourcing of research and development (R&D) activities, and whether or not such a choice is really con- tingent, that is, is it the best choice in terms of its impact on firms’ innovative performance under those circumstances? We build a set of hypotheses based on both the transaction-cost theory and the resource-based view, and test them through a secondary data source analy- sis. We found that companies adopt either R&D M&A or A&JV depending on internal (e.g. resources and capabilities, innovation experience) and external (e.g. degree of industry spe- cialisation) factors. Surprisingly, this contingent choice turns to be effective on innovative performance only for the internal factors, rather than the external. This paper contributes to inter-firm relationships literature by presenting the real advantages of using integrated and contingency theoretical models to understand contingent decisions.