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Make, Buy, Organize: The Interplay between Research, External Knowledge, and Firm Structure

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Author(s)
Arora, Ashish
Belenzon, Sharon
Rios, Luis A
Keywords
decentralization
organizational structure
mergers and acquisitions
patents
R&D
market value
Business Administration, Management, and Operations
Business Analytics
Business and Corporate Communications
Business Law, Public Responsibility, and Ethics
Management Information Systems
Management Sciences and Quantitative Methods
Operations and Supply Chain Management
Organizational Behavior and Theory
Strategic Management Policy
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URI
http://hdl.handle.net/20.500.12424/309173
Online Access
https://repository.upenn.edu/mgmt_papers/334
https://repository.upenn.edu/cgi/viewcontent.cgi?article=1332&context=mgmt_papers
Abstract
We bridge current streams of innovation research to explore the interplay between R&D, external knowledge, and organizational structure–three elements of a firm's innovation strategy which we argue should logically be studied together. Using within-firm patent assignment patterns, we develop a novel measure of structure for a large sample of American firms. We find that centralized firms invest more in research and patent more per R&D dollar than decentralized firms. Both types access technology via mergers and acquisitions, but their acquisitions differ in terms of frequency, size, and integration. Consistent with our framework, their sources of value creation differ: while centralized firms derive more value from internal R&D, decentralized firms rely more on external knowledge. We discuss how these findings should stimulate more integrative work on theories of innovation.
Date
2014-03-01
Type
text
Identifier
oai:repository.upenn.edu:mgmt_papers-1332
https://repository.upenn.edu/mgmt_papers/334
https://repository.upenn.edu/cgi/viewcontent.cgi?article=1332&context=mgmt_papers
Collections
Business Ethics
Research Ethics by Disciplines

entitlement

 

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