Collaboration costs and new product development performance

This study analyzes the relationships between governance in new product development collaboration, collaboration costs, and new product development performance. Data from new technology-based firms indicate that comprehensiveness in formal contractual governance has a stronger negative association with collaboration costs than relational governance does. In addition, collaboration costs relate negatively to new product development performance. This study contributes to understanding transaction costs within collaborative arrangements and the role of relational and formal governance in these arrangements.