Abstract
This article presents a study of managerial decision models for making ownership decisions in technology sourcing relationships to understand the extent to which the models reflect theoretical mechanisms for the benefits and costs of ownership. Empirical support for any particular theory of ownership does not imply that decision makers are necessarily acting in accordance with that theory. Scholars have used transaction cost economics theory to suggest that the need for relationship specific investments by one of the parties in the relationship, and the contracting difficulties that arise, can be an important source of transaction costs. Some scholars have adopted the inter-organizational coordination perspective to suggest that ownership in inter-firm relationships helps control costs.
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