| Although researchers have proposed and confirmed that a primary source of competitive advantage and motivator for alliances and acquisitions is the sourcing of externally available knowledge (Grant, 1996b; Kogut & Singh, 1988), little research has been done on the role of knowledge characteristics in influencing the type of governance mode a firm will employ when its objective is the acquisition of knowledge. This research develops and tests hypotheses based on the knowledge-based view of the firm that integrate the contributions of transaction cost economics and the resource-based view of the firm, and predict whether a firm will use an alliance or acquire another firm when its primary objective is to access externally-existing knowledge. Empirical results indicate that the decision is impacted by the value and complexity of knowledge, as well as its uncertainty and specificity, and that this relationship is moderated by the firm-level characteristics of knowledge seeker network resources, knowledge source knowledge-sharing capabilities, firm digestibility, and knowledge symmetry. Contributions include a deeper understanding of the governance mode decision, knowledge qualities, and the moderating effect of individual and firm-dyad knowledge-related qualities on the governance mode decision, as well the verification that knowledge-motivated acquisitions can be evaluated employing a real options perspective. |
