Showing papers by "Bertrand Quelin published in 2006"

Complexity of Outsourcing Contracts and Ex Post Transaction Costs: An Empirical Investigation*

Abstract: In this article, we use Transaction Cost Economics (TCE) and the Resource-Based View (RBV) of the firm to study outsourcing agreements. We develop an original approach of contract complexity and analyse the links among exchange hazards (i.e. specificity and environmental uncertainty), the contractual aspects of outsourcing (control, incentives, penalties, price and flexibility clauses) and the level of ex post transaction costs. Both contract complexity and ex post transaction costs are operationalized and measured. Our empirical research analyses 82 outsourcing contracts. This article uses three different dimensions (proximity to the core business, switching costs and adaptation costs) to assess the strategic importance of an outsourced activity. Our findings extend TCE's validity for the outsourcing of activities with a strategic value. Finally, this study offers an indirect measurement of ex post transaction costs. In short, to restrict vendor opportunism, contracts must contain incentives and penalties, as well as pricing and monitoring clauses.

Innovation, New Market and Governance Choices of Entry: The Internet Brokerage Market Case

Abstract: This paper investigates the case of market entry strategies following the introduction of a disruptive innovation. Recognizing that market entry strategies have been envisioned in the literature as a discrete phenomenon, we develop an empirical framework that portrays these strategies as a capability building process. Three organizational modes are integrated into our model: acquisition, alliance and market transaction. We compare the first two with the third and test the model in the setting of the online brokerage industry by using a sample of 897 moves made by 98 firms between 1994 and 2000. We suggest that firms' entry modes can be differentiated along factors specific to market timing as well as the degree of specificity of targeted capabilities. Our findings show that acquisitions are used to access specific capabilities. This means that external sources can be used when firms face a make‐or‐buy decision in the aftermath of technological change. Alliances appear to play a limited role while market t...

Inter-organizational communities of practice: specificities and stakes

Abstract: Inter-organizational communities of practice (IOCoPs) are today an emergent research topic and studies in this area are still in an exploratory phase. Theoretical mechanisms are vaguely specified and empirical studies are incipient. For this reason, this paper firstly aims at presenting the specificities and stakes of such organizational forms, establishing reference points for further research in this field. We will introduce the main features of IOCoPs and explain why they do not represent a mere subcategory of CoPs, but a unit of analysis per se. In this paper, we will follow a thematic approach to indicate IOCoPs’ specificities and stakes. We will thus look at the IOCoPs’ actors (in part I), IOCoPs as original organizational forms (part II), then IOCoPs’ life cycle (part III). Finally, we will synthesize IOCoPs’ distinctive features and conclude with a discussion on key interests of IOCoPs for both practitioners and academics.

Mode of entry into a new market: does the timing of entry and/or effect of innovation on competencies matter?

Abstract: Focusing on the timing of entry has led to a relative neglect of the mode of entry into a new market. The purpose of this research is to extend the literature on market entry by developing and testing a model that predicts the entry mode into a new innovative market. The entry mode is here characterized as a function of two parameters: the entry timing and the effect of innovation on firm’s capabilities. Four modes of governance are included in the model: internal development, acquisition, alliance, and market transaction. The empirical analysis examines 76 entries that occurred in the U.S. online brokerage market between 1995 and 1999. Results of the multinomial logit indicate that: 1) internal development is favored by late entrants, 2) alliances and acquisitions are favored by late entrants, 3) market transactions play a significant role during the emerging phase of the market. Results regarding internal development and market transactions are contrary to our predictions. Results also indicate that the impact of innovation on firm’s capabilities does not appear to influence the mode of entry into a new innovative market.

Mode of entry into a new market: does the timing of entry and/or effect of innovation on competencies matter?

Abstract: Focusing on the timing of entry has led to a relative neglect of the mode of entry into a new market. The purpose of this research is to extend the literature on market entry by developing and testing a model that predicts the entry mode into a new innovative market. The entry mode is here characterized as a function of two parameters: the entry timing and the effect of innovation on firm’s capabilities. Four modes of governance are included in the model: internal development, acquisition, alliance, and market transaction. The empirical analysis examines 76 entries that occurred in the U.S. online brokerage market between 1995 and 1999. Results of the multinomial logit indicate that: 1) internal development is favored by late entrants, 2) alliances and acquisitions are favored by late entrants, 3) market transactions play a significant role during the emerging phase of the market. Results regarding internal development and market transactions are contrary to our predictions. Results also indicate that the impact of innovation on firm’s capabilities does not appear to influence the mode of entry into a new innovative market.