Identifying the moderating role of entrepreneurial orientation in the innovation uncertainty-collaborative technology development relationship: finding from the Korean high-tech firms

Abstract

Alliance studies propose that interfirm collaboration encourages innovation activities for resource- and experience-lacking high-tech small firms (HTSFs). Yet, they may not pursue collaboration due to potentially irreversible risks. This study examines drivers of HTSFs’ boundary decisions for innovation using transaction-cost and resource-based perspectives. Perceived uncertainties of innovation projects and entrepreneurial orientation were identified as core determinants among 178 Korean software-development firms. Some aspects of perceived uncertainty prevented collaboration, but entrepreneurial orientation of decision makers moderated and favoured more collaborative choices. This analysis provides valuable theoretical and practical insights on the conditions under which HTSFs should pursue in-house or external innovative activities.