Innovation performance feedback and patent acquisition from the market: A behavioral perspective

Abstract

Firms can facilitate external technology sourcing through transactions from the market. This study focuses on determinants of demand‐side motivation to join the technology transactions market. Drawing on the behavioral theory of the firm, we suggest that one of such determinants is the desire of a firm, whose innovation performance is below its aspiration level, to find a technology that will help improve its performance. Furthermore, we suggest that inconsistent feedback on its multiple goals and the type of R&D structure as moderating factors that can influence a firm's acquisition of technology in response to its poor performance.