Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Wholly‐owned vs. collaborative ventures for diversifying financial services
AU - Ingham, Hilary
AU - Thompson, Steve
PY - 1994/5/31
Y1 - 1994/5/31
N2 - Recent empirical work has supported the Penrose‐Teece view that firms diversify to exploit fully specific assets or capabilities. Where transactions costs permit, these economies of scope may be realized via input supply contracts among producers. However, asset specificities frequently create transactions costs which discourage market contracting and leave firms with a choice between collaborative ventures and wholly‐owned new entry. This research uses the natural experiment of financial services deregulation to explore the collaborative‐own entry choice for 292 new entries in 13 financial product markets. The results generally support our maintained hypotheses that specificity encourages full ownership while collaboration is used to ease a resource constraint.
AB - Recent empirical work has supported the Penrose‐Teece view that firms diversify to exploit fully specific assets or capabilities. Where transactions costs permit, these economies of scope may be realized via input supply contracts among producers. However, asset specificities frequently create transactions costs which discourage market contracting and leave firms with a choice between collaborative ventures and wholly‐owned new entry. This research uses the natural experiment of financial services deregulation to explore the collaborative‐own entry choice for 292 new entries in 13 financial product markets. The results generally support our maintained hypotheses that specificity encourages full ownership while collaboration is used to ease a resource constraint.
KW - Asset specificity
KW - collaboration
KW - joint ventures
U2 - 10.1002/smj.4250150406
DO - 10.1002/smj.4250150406
M3 - Journal article
AN - SCOPUS:84989103252
VL - 15
SP - 325
EP - 334
JO - Strategic Management Journal
JF - Strategic Management Journal
SN - 0143-2095
IS - 4
ER -