Dark side of joint R&D collaborations : dependence asymmetry and opportunism

Purpose: The purpose of this study is to enhance the comprehensive understanding of the roles of resource investments, explicit contracts and three components ofguanxi(i.e.renqing,ganqingandmianzi) in asymmetric research and development (R&D) partnerships. Treating dependence asymmetry as a multidimensional construct, this study examines the moderating effects of these elements on the relationships between resources and information asymmetry and opportunism. Design/methodology/approach: The study was executed by issuing questionnaires to R&D managers participating in R&D projects and collaborations in the Shanghai and Jiangsu provinces via e-mail and face to face surveys. A multiple regression analysis was used to test the hypotheses. Findings: The empirical test generally supported the conceptual model and produced the following findings: first, resources and information asymmetry significantly and positively affect opportunism. Second, the partner’s resource investments can weaken the effect of resources and information asymmetry on the partner’s opportunism. Third, explicit contracts can reduce the impact of information asymmetry on the partner’s opportunism. Fourth,renqingandganqingbut notmianzican weaken the influence of information asymmetry on the partner’s opportunism. Originality/value: This study provides a comprehensive and clear understanding of how opportunism can be curbed by jointly considering resource investments, explicit contracts andguanxiin asymmetric R&D cooperative relationships. Moreover, dependence asymmetry andguanxiare measured as a multidimensional construct and reveal their underlying structure, which expands previous understandings of risk management in R&D collaborations.