Virtual technology marketing and governance problems: how can firms benefit from dynamic boundaries?
by Ingyu Oh
International Journal of Technology Marketing (IJTMKT), Vol. 5, No. 2, 2010

Abstract: Extant studies find that firms' dynamic boundaries are beneficial especially during and after a technological change that is competence-destroying to the firms and their suppliers. In virtual technology marketing, however, where firms' boundaries are transnational and dynamic, governance problems in the form of inclination to opportunism and knowledge spill-over loom large. This paper presents preliminary theoretical discussions of how firms can safeguard their investment in innovation and reap the benefit of dynamic boundaries. I devise a table of governance problems for five different types of virtual technology marketing and suggest testable propositions. The paper concludes that in all five types of virtual technology marketing, firms can realise the benefit of dynamic boundaries if isomorphic forces and government regulations can neutralise the governance problem of virtual technology marketing.

Online publication date: Sat, 02-Oct-2010

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