Governance and uncertainty: the tradeoff between administrative control and commitment

Article Abstract:

Companies that want to improve their technical capabilities have to decide whether to collaborate with other companies or acquire another entity that has a desired technology. A study was conducted to examine how this governance decisionmaking is influenced by technological uncertainty. In particular, this investigation focuses on decisionmakers' motives for making outright acquisition of a target firm or resorting to equity-based collaborations such as joint ventures and direct minority investments. Based on data from a sample of 402 deals in the biotechnology sector, results showed that dissimilar partners have a greater tendency to choose collaboration than acquisitions. Also, technical subfields where growth opportunities, as well as rivalries, are greater are more open to collaborations. The study also found that technological uncertainty leads to collaboration.

Research, Acquisitions and mergers, Industrial research, Strategic alliances (Business)

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Entry in the presence of dueling options

Article Abstract:

Throughout 93 percent of the range of uncertainty, uncertainty has a negative effect on entry, implying that the option to defer dominates growth options in most contexts. The influence of industry uncertainty on the decision by established firms to enter a new industry is discussed.

Decision-making, Decision making, Influence

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What to do next? The case for non-predictive strategy

Article Abstract:

The process of planning and adaptive approaches for non-predictive conditions in business organizations is presented.

United States, Strategic planning (Business)

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