Inderscience Publishers

Compensation preferences of R&D-suppliers: some empirical results

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R&D suppliers who are not compensated according to their preferences are motivated to behave opportunistically. The paper presents empirical findings about these preferences. The investigation is based on the assumption that the probability of a continuous compensation, instead of a final payment, increases when the negotiation power of the supplier rises. The results confirm this presumption with regard to the power determinants of effective intellectual property rights and the number of cooperation alternatives. In contrast to that, suppliers, who control the complementary assets themselves, have no explicit preference.

Keywords: contract R&, D, research and development, supplier opportunism, compensation preferences, negotiation power, resource dependence theory, continuous compensation, suppliers, cooperation, intellectual property rights, IPR

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