When the fog dissipates: The choice between value creation and value appropriation in a partner as a function of information asymmetry

Todd Morgan, Sergey Anokhin, Joakim Wincent

Forskningsoutput: TidskriftsbidragArtikelVetenskapligPeer review

8 Citeringar (Scopus)

Sammanfattning

This paper investigates preferences for strategic emphasis in large corporation–small firm relationships and explores how information asymmetry may moderate these preferences. Our findings suggest that information asymmetry plays a crucial role in the development of an equity partnership between large public corporations and small, privately owned, growth-oriented firms. We study 233 instances of equity partnering between large corporations and small firms to investigate the contingency effect of information asymmetry on small firms' choice of equity partner. Our results indicate that when information asymmetry between the partners is low, small firms choose partners with a strategic emphasis on value creation. Conversely, when information asymmetry is high, small firms tend to choose corporate partners that emphasize value appropriation. This finding suggests that information asymmetry makes small firms wary of entering into equity partnerships and makes them unwilling to partner with corporations that potentially have the most to offer in terms of technological expertise.
OriginalspråkEngelska
Referentgranskad vetenskaplig tidskriftJournal of Business Research
Volym88
UtgåvaJuly
Sidor (från-till)498-504
Antal sidor7
ISSN0148-2963
DOI
StatusPublicerad - 08.12.2017
MoE-publikationstypA1 Originalartikel i en vetenskaplig tidskrift

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