Abstract
This study investigates four different sourcing strategies employed by firms in order to successfully deal with a new architectural innovation hitting the market. The four sourcing approaches reflect the varying degrees of internalization of component design and manufacturing: make, in-house design, long-term supplier, and new supplier, where make implies the highest and new supplier the lowest degree of internalization of the firm's component sourcing in a spectrum. Comparing and contrasting the innovation performance of the four sourcing approaches in the pre- and post-dominant design eras, we suggest theoretical implications for the critical path of strategic sourcing decisions over time for a new architectural innovation. By doing so, we suggest an integrated framework of stage-contingent sourcing strategies and provide the associated empirical results that demonstrate normative strategic guidance for managers.
Original language | English |
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Pages (from-to) | 326-341 |
Number of pages | 16 |
Journal | Research Policy |
Volume | 47 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 Feb 2018 |
Keywords
- Architectural innovation
- Dominant design
- In-house design
- Long-term relationship
- Make strategy
- New supplier relationship
ASJC Scopus subject areas
- Strategy and Management
- Management Science and Operations Research
- Management of Technology and Innovation