GOING FAST OR FASTIDIOUS: EXAMINING THE INFLUENCE OF DIRECTOR EXPERIENCE ON EXTERNAL KNOWLEDGE SOURCING

Abstract

High technology firms are increasingly dependent on the external environment as a source of knowledge. Recent governance studies indicate that the board of directors is uniquely positioned to help such firms notice and obtain outside knowledge. However, the extant research is yet to examine how directors’ backgrounds might shape the firm’s external knowledge sourcing strategies. This omission is critical because the firm can obtain external knowledge using distinct modes, and directors will likely favor modes that reflect their orientation toward technology and market issues. In my dissertation, I address this gap by examining the link between directors’ experience and three widely studied knowledge sourcing modes: inventor recruitment, R&D alliances, and technology acquisitions. Drawing on upper echelons theory and the innovation literature, I argue that boards populated by directors with technical and marketing experience will evidence differing patterns in knowledge sourcing. The findings show that while technical experience enables directors to shape all examined modes, marketing experience appears to have little impact on the firm’s knowledge sourcing choices. Specifically, I find that directors with technical experience increase knowledge sourcing via inventor recruitment and R&D alliances and decrease technology acquisitions. More importantly, these relationships are contingent on the quality of the firm’s knowledge capabilities and the latest technological developments in the competitive environment.I discuss the theoretical implications of the dissertation and potential future directions