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Managerial decision making regarding using organizational forms methodology to develop technological innovations in the context of technological strategy has not been the subject of a prolific number of studies; nevertheless, it has proven to be an important matter. This is particularly notable in the Iberoamerican context, where a theoretical framework has not been developed yet. It is within such a context that this empirical research intends to determine the organizational forms used by companies of the machine‐tool sector of the Basque Country in their implementation of processes of technological innovation. This research is supported by the theoretical framework provided by transaction cost economics, evolutionary economics, and competitive strategy theories. It also uses the contrasting approach as a starting point for proposing some extensive ideas on this issue.

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