Technological Intangible Assets Governance Mechanism Based on the Assets Specificity Theory

Technology assets play a crucial role in enabling the competitiveness of companies in most industries. In this paper, we firstly attempt to clearly identify the types of the technological intangible assets that a company must acquire and apply in order to be successful in the marketplace. According to the analytical framework for assets specificity theory, a contract model is proposed to study the under investment of technological intangible assets. Further analyses showed that under investment of technological intangible assets are due to the high degree of transaction costs. We would choose the proper governance mechanism to operate technological intangible assets varies with the degree of asset specificity. Finally, the technological intangible assets governance mechanism matching model is proposed.