Academic SeminarLEARNING BY DOING AND CORPORATE DEVELOPMENT ACTIVITIES
- 2019-04-18 ~ 2019-04-18
- Building 9, 3rd #9303
- School of Management Engineering
We would like to invite you to participate in Management Engineering (ME) Seminar.
1. When: April 18th (Thursday), 16:00 ~ 17:30
2. Where: Building 9, 3rd #9303
3. Speaker: Prof. Wonsang Ryu (KAIST)
4. Topic: LEARNING BY DOING AND CORPORATE DEVELOPMENT ACTIVITIES
5. Research field: Technology, Organization, and Strategy
* Lecture will be delivered in Korean.
We examine how learning-by-doing rates affect firms’ choice of organizational governance and the content of interfirm collaborations in their corporate development activities. Transacting firms face exchange hazards due to asymmetric information about the quality of partner resources and symmetric uncertainty about the potential value of combining resources. We argue that such concerns are particularly substantial when the firms belong to industries where important knowledge is created by own experience and deeply embedded within routines. This leads us to predict that firms in industries with high learning-by-doing rates attempt to mitigate such exchange hazards by tending not only to choose alliances over acquisitions, but also to exclude manufacturing functions in their alliances. We also claim that the effects of learning-by-doing rates on the likelihood of employing these remedies are reinforced in inter-industry transactions where the transaction hazards are further aggravated.