Ph.D. Candidate, Marketing, University of Illinois at Urbana-Champaign Expected Completion: May 2009

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1 JONGKUK LEE Business Administration Tel: (217) , Champaign, IL EDUCATION 2004 Present Ph.D. Candidate, Marketing, Expected Completion: May M.S., Management Engineering, Korea Advanced Institute of Science and Technology (KAIST), Korea Area: Applied Econometrics B.S., Chemical Engineering, Seoul National University, Seoul, Korea RESEARCH INTERESTS Interorganizational Relationship Marketing, New Product Innovation, Channel Relationship Management TEACHING INTERESTS Marketing Strategy, Channel Management, Business-to-Business Marketing, New Product Marketing DISSERTATION Exploratory and Exploitative Alliances for New Product Innovations: The Alignment of Resource Integration and Governance Structures Committee: William J. Qualls (Chair, Marketing), Glenn Hoetker (Strategy), Ursula Sullivan (Marketing), Eric Fang (Marketing) Essay 1: The Choice of Resource Integration and Governance Structures (Status: Manuscript being finalized for submission to the Journal of Marketing) The formation of alliances for new product innovations involve the choice of two interrelated contract terms, that is, how to integrate resources between partners (resource integration) and how to govern the relationships (alliance governance). This essay examines 1) how firms choose these two contract terms for exploratory and exploitative alliances across the innovation process and 2) the role of partners alliance experience in coordinating the choice. By analyzing 2,194 innovation alliances formed in the biotechnology and pharmaceutical industries between 2002 and 2006, I find that firms are more likely to pool their resources, with less use of hierarchical alliance governance such as equity investment, for exploratory alliances relative to exploitative alliances. This essay also shows that as a firm gains more alliance experience, the governance structure of a new alliance is more likely to be determined in a way that accommodates its partner s concerns. The results imply that beyond each partner s response to mitigate its own concerns, the choice of resource integration and governance structures is an outcome of dyadic accommodation that creates an interorganizational competitive advantage or relational rent. 1

2 Essay 2: The Alignment of Resource Integration and Governance Structures and New Product Innovation Performance (Status: Manuscript being finalized for submission to the Journal of Marketing Research) This essay examines how the choice and alignment of contract terms affect radical and incremental innovations. By analyzing 48 publicly traded pharmaceutical firms engaged in 1,767 alliances between 1990 and 2006, I find that a firm s exploratory alliance portfolio better leads to radical innovations when the contract terms are aligned in a way that reaches a compromise between two conflicting goals, coordination and search flexibility; otherwise, the exploratory alliance portfolio, in spite of its orientation toward radical innovations, can lead to only incremental innovations. In contrast, a firm s exploitative alliance portfolio better leads to incremental innovations when simple contract terms are used, which minimize the costs of implementing these contract terms themselves. This essay therefore provides important insights into the choice and alignment of contract terms for interorganizational relationships. Essay 3: Trade-Offs Versus Interactions Between Exploratory and Exploitative Alliances (Status: Further tests being conducted for submission to a journal) This essay examines two alternative relationships between exploration and exploitation alliances for new product innovations: trade-offs versus positive interactions. The analysis of 66 publicly traded pharmaceutical firms between 1990 and 2006 reveals that trade-offs exist between exploratory and exploitative alliances for radical and incremental innovations. However, this essay further shows that smaller firms experience more positive interactions between exploratory and exploitative alliances for both radical and incremental innovations, whereas larger firms experience more negative interactions. The results imply that larger firms can benefit from focusing on either exploratory or exploitative alliances depending on their goals (radical vs. incremental innovations), whereas smaller firms can benefit from balancing the exploratory and exploitative alliances. JOURNAL PUBLICATIONS Lee, Jongkuk and William J. Qualls (forthcoming), A Dynamic Process of Buyer-Seller Technology Adoption Behavior, Journal of Business and Industrial Marketing. MANUSCRIPTS UNDER REVIEW Eric Fang, Jonkuk Lee, William J. Qualls, The Effect of Relationship Marketing on Shareholder Value. (Status: Being invited to the second review by the Journal of Marketing). The authors propose a theoretical foundation to investigate how the dynamic nature of building relationship portfolios over time may deliver shareholder value. Using data from a variety of secondary data sources from 1990 to 2006, they find that R&D and marketing relationships follow distinct patterns for determining shareholder value, as measured by Tobin s q. A stable pace associated with building high-level R&D relationships can improve shareholder value, whereas an escalating pace for building marketing relationships offers greater benefits, even though the number of marketing relationships itself indicates a U-shaped relationship with shareholder value. This study therefore suggests that researchers and managers must attend to both static and dynamic aspects of building R&D and marketing relationships over time. 2

3 WORKS IN PROGRESS Lee, Jongkuk and William J. Qualls, Innovation Alliance Strategies: Alignment of Resource Access and Interfirm Governance. (Status: Manuscript being finalized for submission to the Journal of the Academy of Marketing Science) Alliances are increasingly common for new product innovations in today s dynamic and knowledge-rich environment. This study investigates 1) different innovation alliance strategies resulting from the alignment of resource access and interfirm governance and 2) their implications for partners abnormal stock returns. By applying canonical correlation analysis to 402 alliance agreements formed in the biotechnology and pharmaceutical industries from 1997 to 2002, we find four different innovation alliance strategies. Our results indicate that different governance structures (hierarchical and relational) function as complements or substitutes depending on the alliance strategies in use. Profile deviation analysis further shows the cost of misaligning resource access and interfirm governance when forming an innovation alliance. Lee, Jongkuk, Udatta S. Palekar, and William J. Qualls, Channel Efficiency and Security: Coordination for Collaborative Adoption of Technology. (Status: Manuscript being finalized for submission to Management Science) Despite the potential value of information technologies for channel management, they are not always adopted as expected. We examine the coordination problem between a manufacturer and retailer when jointly adopting a new technology. Our analysis shows that different coordination issues can arise from the relative strength of efficiency and security concerns in a decentralized channel structure. When efficiency is a primary concern, there is a risk of underinvestment by one party and overinvestment by the other party because of conflicts of interest. In contrast, with security as a primary concern, a coordination problem can result from the behavioral uncertainties of channel members rather than from their conflicts of interest. The optimal adoption for efficiency can be coordinated internally by using incentives such as an increase in purchasing quantity. In contrast, the optimal adoption for security may not be achieved internally, requiring further external incentives or coordination, such as tax incentives or mandates by a central authority. Qualls, William J. and Tracking and Tracing Products: The Degree and Scope of Channel Collaboration. (Status: Manuscript being prepared for submission to the Journal of Business Logistics) The ability to track and trace product flows across organizational boundaries is gaining more attention as a critical factor influencing firm performance in today s complex distribution channel networks. Using an agent-based model (ABM), we examine the financial consequences of both dyadic and network collaboration strategies in adopting an enterprise-wide technology that is aimed at improving distribution channel efficiency and security by tracking and tracing products more visibly. Our study shows that a firm s profit performance resulting from enterprise-wide technology adoption is contingent upon other channel stakeholders collaboration behavior in the process of technology adoption. CONFERENCE PRESENTATIONS Lee, Jongkuk and William J. Qualls (2008, June), Innovation Alliance Strategies: Alignment of Resource Access and Interfirm Governance. Paper presented at the Marketing Science Conference, Vancouver, Canada. Lee, Jongkuk (2008, January), Global Supply Chain Strategy: Alignments with Business Strategy and Task Environments. Paper presented at the AMS Cultural Perspectives in Marketing Conference, New Orleans, LA. Lee, Jongkuk, Udatta S. Palekar, and William J. Qualls (2007, June), Supply Chain Coordination for Collaborative Technology Adoption. Paper presented at the Marketing Science Conference, Singapore. 3

4 Lee, Jongkuk and William J. Qualls (2007, February), Collaboration Behavior and Interorganizational Governance: An Integrative Framework. Paper presented at the American Marketing Association Winter Educators Conference, San Diego, CA. Lee, Jongkuk and William J. Qualls (2006, June), Collaboration Behavior and Interorganizational Governance in Buyer-Seller Networks. Paper presented at the Marketing Science Conference, Pittsburgh, PA. Lee, Jongkuk and William J. Qualls (2006, February), A Dynamic Process of Buyer-Seller Technology Adoption Behavior. Paper presented at the 13th annual academic workshop by the Center for Business and Industrial Marketing at Georgia State University, GA. TEACHING Instructor for Principles of Marketing, Summer 2008 (teaching evaluation: 4.4/5.0) and Summer 2007 (teaching evaluation: 3.9/5.0) Instructor for supply Chain Management Basics, Spring 2009 ACADEMIC POSITIONS Teaching Assistant for Principles of Marketing, Fall 2005 and Spring 2006 Research Assistant, Assisted William Qualls in the Development of an Agent-Based Model of Channel Collaboration, Research Assistant, Assisted Udatta Palekar in Research on Channel Coordination for Technology Adoption, INDUSTRY EXPERIENCE Manager (New Product Planning of Telecommunications Equipment), Dasan Networks, Korea, Assistant Manager (New Product Management), Neoptek, Korea, Assistant Manager (R&D Planning and Management of Telecommunication Semiconductors), LG Cable, Korea, HONORS AND OTHER ACTIVITIES Fellow, American Marketing Association Sheth Foundation Doctoral Consortium, Arizona State University, 2007 Fellow, 37th Annual Haring Symposium, Indiana University, 2007 Seymour Sudman Research Excellence Award,, 2007 J.M. Jones Fellowship,, GRANT Jongkuk Lee (2007), Interfirm Collaboration, Entrepreneurial Orientation, and Innovation Performance. $1,500, funded by the Academy for Entrepreneurial Leadership Graduate Scholars Program, University of Illinois at Urbana-Champaign. 4

5 SELECTED COURSEWORK Seminars in Marketing Research Seminar in Consumer Behavior Shavitt, S. Marketing Theory and Systems Gardner, D. Advanced Topics in Marketing I (Pricing, Branding, New Product Marketing) Wansink, B. Advanced Topics in Marketing II (Interorganizational Marketing) Qualls, W. Strategy and Organizational Theory Strategy Content Research Mahoney, J. Advanced Topics in Organizational Theory Broschak, J. Social Network Analysis Han, S. The Age of Networks: Social, Cultural, and Technological Connections Contractor, N. Statistical Research Methods Behavior Research Methods Viswanathan, M. Statistical Inference Klein, A. Multivariate Analysis Klein, A. Covariate Structure and Factor Models (Structural Equation Modeling) Hong, S. Applied Categorical Data Analysis Anderson, C. Mathematical Models and Industrial Organization Math Models in Marketing Palekar, U. Risk and Information: Theory and Application (Game Theory) Nelson, C. Industrial Competition and Monopoly Bose, S. Dynamic Simulation Hannon, B. 5

6 REFERENCES William Qualls Professor of Marketing (217) Udatta Palekar Associate Professor of Marketing Director, Supply Chain Management Program Champaign, IL (217) Glenn Hoetker Associate Professor of Strategy (Business, Law, Institute for Genomic Biology) (217) Ursula Sullivan Assistant Professor of Marketing (217) Eric Fang Assistant Professor of Marketing Last updated: April 10,