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SELECTING CORPORATE FIRMS FOR COLLABORATIVE INNOVATION: ENTREPRENEURIAL DECISION MAKING IN ASYMMETRIC PARTNERSHIPS

World Scientific
International Journal of Innovation Management
Authors:
Martin Allmendinger at University of Hohenheim
Martin Allmendinger
Elisabeth S.C. Berger at Johannes Kepler University of Linz
Elisabeth S.C. Berger
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Abstract

Large companies increasingly look for collaborations with new ventures to accelerate their innovation process, and researchers stress the potential of such partnerships to develop innovations. But when are entrepreneurs willing to engage in a partnership with a larger player? We seek to understand when founders of new ventures are willing to engage in such asymmetric partnerships through consideration of the characteristics of the entrepreneurial decision maker and the perceived attributes of the larger counterpart. The results of a conjoint experiment with 115 startup entrepreneurs suggest that among the partner selection criteria a high level of openness on the part of the large corporate company and concise contractual design signal trustworthiness to entrepreneurs, which has a positive impact on their willingness to engage in collaborative innovation. Our study also suggests that entrepreneurs’ self-efficacy reduces the willingness to partner and the positive impact of concise contractual designs. The results have implications for the self-concept and design of innovation and partner management of large firms, and for entrepreneurs who consider asymmetric partnerships a growth opportunity.
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SELECTING CORPORATE FIRMS FOR
COLLABORATIVE INNOVATION: ENTREPRENEURIAL
DECISION MAKING IN ASYMMETRIC PARTNERSHIPS
MARTIN P. ALLMENDINGER
*
,
‡
and ELISABETH S. C. BERGER
*
,
†
*
Entrepreneurship Research Group, University of Hohenheim
Wollgrasweg 49, 70599 Stuttgart, Germany
†
TUM School of Management, Chair of Strategic Management
Technical University of Munich, Bildungscampus 2
74076 Heilbronn, Germany
‡
martin_allmendinger@uni-hohenheim.de
Published 21 January 2019
Large companies increasingly look for collaborations with new ventures to accelerate their
innovation process, and researchers stress the potential of such partnerships to develop inno-
vations. But when are entrepreneurs willing to engage in a partnership with a larger player? We
seek to understand when founders of new ventures are willing to engage in such asymmetric
partnerships through consideration of the characteristics of the entrepreneurial decision maker
and the perceived attributes of the larger counterpart. The results of a conjoint experiment with
115 startup entrepreneurs suggest that among the partner selection criteria a high level of
openness on the part of the large corporate company and concise contractual design signal
trustworthiness to entrepreneurs, which has a positive impact on their willingness to engage in
collaborative innovation. Our study also suggests that entrepreneurs’self-efficacy reduces the
willingness to partner and the positive impact of concise contractual designs. The results have
implications for the self-concept and design of innovation and partner management of large
firms, and for entrepreneurs who consider asymmetric partnerships a growth opportunity.
Keywords: Asymmetric partnerships; collaborative innovation, entrepreneurial decision
making; open innovation; partner management; partner selection criteria; startup; trustworthiness.
Introduction
As large companies address ever more rapid technological developments, they
become more aware of the need for dynamic and innovative partners to help them
‡
Corresponding author.
International Journal of Innovation Management
Vol. 24, No. 1 (January 2020) 2050003 (34 pages)
© World Scientific Publishing Company
DOI: 10.1142/S1363919620500036
2050003-1
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