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The decision to make or buy a critical technology: semiconductors at Ericsson, 1980--2010

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  • Henrik Glimstedt
  • Donald Bratt
  • Magnus P. Karlsson

Abstract

This article considers the decisions to outsource and re-integrate the development of critical and innovative technologies. It documents a historical sequence of choices made by strategists within a high-tech company, Ericsson. The evidence discussed indicates that a broad range of different factors were taken into consideration and that the influential people made a point of running different kinds approaches to outsourcing in parallel. Re-integration occurred when the structures put in place by collaborating firms did not sustain innovation. Copyright 2010 The Author 2010. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • Henrik Glimstedt & Donald Bratt & Magnus P. Karlsson, 2010. "The decision to make or buy a critical technology: semiconductors at Ericsson, 1980--2010," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(2), pages 431-464, April.
    • Handle: RePEc:oup:indcch:v:19:y:2010:i:2:p:431-464
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    File URL: http://hdl.handle.net/10.1093/icc/dtq011
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    Cited by:

    1. Adams, Pamela & Fontana, Roberto & Malerba, Franco, 2013. "The magnitude of innovation by demand in a sectoral system: The role of industrial users in semiconductors," Research Policy, Elsevier, vol. 42(1), pages 1-14.
    2. Chazi, Abdelaziz & Khallaf, Ashraf & Liu, Yi & Zantout, Zaher, 2014. "Technology transactions, announcement effect, and reversal: Dissecting an anomaly," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(3), pages 371-381.
    3. Law, Florence, 2018. "Breaking the outsourcing path: Backsourcing process and outsourcing lock-in," European Management Journal, Elsevier, vol. 36(3), pages 341-352.

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