Why do firms join consortial research centers? An empirical examination of firm,industry and environmental antecedents

The purpose of this study was to test 10 hypotheses for why firms join research centers that are consortial in nature. We describe research centers with a formal arrangement for accommodating external membership as being consortial research centers (CRC). Although traditional analysis of why firms form collaborative research arrangements have tended to focus upon firm level variables, this study takes a broader view on antecedent factors. We derive hypotheses from resource dependence theory, market forces theory, and strategic behavior model explanations for such firm behavior. Panel data from 503 firms, in 104 industries from 1978 through 1996 were used to test the hypotheses. The decision to join a CRC was modeled using multivariate binomial probit analysis. Results showed that industry competitiveness, technological opportunities and the production of complementary innovations are all positively related to propensity to join a CRC. Slack resources are related to joining propensity in a non-linear fashion.