ORGANIZATIONAL CONTEXT AS A MODERATOR OF THEORIES ON FIRM BOUNDARIES FOR TECHNOLOGY SOURCING.

Abstract

Three research theories used to explain firm boundaries are transaction cost economics, an options perspective, and a resource-based view of the firm. The authors' integrated model addresses the degree to which each of these three perspectives explains firm boundaries for technology sourcing is contingent on managerial risk taking, which is partly determined by organizational context. The authors' results suggest that, in general, management stockholdings, firm risk orientation, and slack resource availability moderate the extent to which the perceived threat of opportunism, the threat of commercial failure, and opportunity for sustainable advantage all influence firm boundaries.

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