Governance mechanisms and relationship productivity in vertical coordination for new product development
Governance mechanisms and relationship productivity in vertical coordination for new product development
This article explores the theoretical explanations of governance mechanisms in vertical coordination between firms over the product life cycle stages with reference to the high-technology industry. Firms in the high-tech industry face uncertainties of fast-changing environments such as rapid technological innovations and shortening product life cycles. Drawing on transaction cost analysis in vertical coordination, conditions under which transactional inefficiencies may arise are analyzed on different stages of product life cycle theory. Theoretical analysis suggests that interaction patterns over a product life cycle produce differing implications for achieving cost minimization and value maximization. The implications of this variation in transaction cost inefficiencies suggest that there are different opportunities for enhancing efficiencies or for creating value at different stages of the product life cycle. The article proposes that by considering the impact of exogenous factors on the stage of a product life cycle and relationship productivity, high-tech firms operating in volatile markets can safeguard their exposure to transactional inefficiencies.
761-769
Eng, Teck-Yong
349165eb-272c-4a7a-93b4-e2416ed4a537
Wong, Veronica
e0a99ab0-0b46-4e7f-8dc5-22da345a074f
July 2006
Eng, Teck-Yong
349165eb-272c-4a7a-93b4-e2416ed4a537
Wong, Veronica
e0a99ab0-0b46-4e7f-8dc5-22da345a074f
Eng, Teck-Yong and Wong, Veronica
(2006)
Governance mechanisms and relationship productivity in vertical coordination for new product development.
Technovation, 26 (7), .
(doi:10.1016/j.technovation.2004.10.015).
Abstract
This article explores the theoretical explanations of governance mechanisms in vertical coordination between firms over the product life cycle stages with reference to the high-technology industry. Firms in the high-tech industry face uncertainties of fast-changing environments such as rapid technological innovations and shortening product life cycles. Drawing on transaction cost analysis in vertical coordination, conditions under which transactional inefficiencies may arise are analyzed on different stages of product life cycle theory. Theoretical analysis suggests that interaction patterns over a product life cycle produce differing implications for achieving cost minimization and value maximization. The implications of this variation in transaction cost inefficiencies suggest that there are different opportunities for enhancing efficiencies or for creating value at different stages of the product life cycle. The article proposes that by considering the impact of exogenous factors on the stage of a product life cycle and relationship productivity, high-tech firms operating in volatile markets can safeguard their exposure to transactional inefficiencies.
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EngWong06_Tech26[7].pdf
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Published date: July 2006
Organisations:
Centre for Digital, Interactive & Data Driven Marketing
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Local EPrints ID: 391524
URI: http://eprints.soton.ac.uk/id/eprint/391524
ISSN: 0166-4972
PURE UUID: 12633e2e-b0fe-4c65-bfed-c2a2a4fe7f30
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Date deposited: 21 Apr 2016 15:59
Last modified: 14 Mar 2024 23:30
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Author:
Teck-Yong Eng
Author:
Veronica Wong
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