Partner Selection in R&D Collaborations: Effects of Affiliations with Venture Capitalists
Publication in refereed journal


Times Cited
Altmetrics Information
.

Other information
AbstractThis paper extends information economics to the literature on alliance partner selection by demonstrating how venture capitalists (VCs) can facilitate research and development (R&D) collaborations. We investigate a new role for VCs—information intermediation—that can enable R&D partnerships between entrepreneurial ventures that lack knowledge of each other’s technological resources. In contrast to the more diffuse signaling benefits entrepreneurial ventures obtain by affiliating with prominent VCs, backing by a common VC can privately and directly reduce information asymmetries between entrepreneurial ventures. We demonstrate that the effects of VC information intermediation are more pronounced when prospective collaborators are at the earliest stages of product development and when they find it difficult to judge each other’s technological resources, such as when they do not have previous partnerships together, do not draw upon each other’s knowledge bases, and have dissimilar technology portfolios. We empirically investigate the multiple ways in which VCs potentially facilitate R&D partner selection and identify specific conditions under which VCs’ information intermediation function contributes to segmentation in markets for R&D alliances.
Acceptance Date25/11/2016
All Author(s) ListJeffrey J. Reuer, Ramakrishna Devarakonda
Journal nameOrganization Science
Year2017
Month5
Volume Number28
Issue Number3
PublisherINFORMS
Pages574 - 595
ISSN1047-7039
eISSN1526-5455
LanguagesEnglish-United States
KeywordsR&D partner selection, venture capitalists (VCs), entrepreneurial ventures

Last updated on 2020-06-07 at 00:49