World-Class Or Good Enough — The Choice Of Partner When Outsourcing New Product Development In Medium-Sized Firms
AbstractResearch on outsourcing normally focuses on outsourcing of production and often uses large firms as samples. Only a few studies address the outsourcing of services or knowledge-intensive activities such as new product development (NPD), and especially in the context of medium-sized firms. Our earlier research in medium-sized firms indicates that outsourcing of NPD is frequent in medium-sized firms, and that there is a lack of knowledge about the phenomenon.This article offers a theoretical framework to study the outsourcing of NPD, and includes the results from a longitudinal case study carried out in six Swedish medium-sized firms to help understand the rationales behind outsourcing of NPD. Results from the present study indicate that 'good enough' is the keyword for medium-sized firms with limited resources. This means that it is considered more important with proximity and trust than world class competence, since close and frequent contacts are crucial, when outsourcing knowledge-intensive activities such as NPD. A conceptual model and a definition of the good enough concept are also presented.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Journal of Innovation and Technology Management.
Volume (Year): 05 (2008)
Issue (Month): 04 ()
Contact details of provider:
Web page: http://www.worldscinet.com/ijitm/ijitm.shtml
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Markus C. Becker & Francesco Zirpoli, 2003. "Organising new product development Knowledge hollowing-out and knowledge integration," DRUID Working Papers 03-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-96, September.
- James H. Love & Stephen Roper, 2005. "Economists' perceptions versus managers' decisions: an experiment in transaction-cost analysis," Cambridge Journal of Economics, Oxford University Press, vol. 29(1), pages 19-36, January.
- Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 451-496, June.
- Andr Torre Shaw & Jean-Pierre Gilly, 2000. "On the Analytical Dimension of Proximity Dynamics," Regional Studies, Taylor and Francis Journals, vol. 34(2), pages 169-180.
- Boehe, Dirk Michael, 2007. "Product development in MNC subsidiaries: Local linkages and global interdependencies," Journal of International Management, Elsevier, vol. 13(4), pages 488-512, December.
- Ludovic Dibiaggio, 2007. "Design complexity, vertical disintegration and knowledge organization in the semiconductor industry," Industrial and Corporate Change, Oxford University Press, vol. 16(2), pages 239-267, April.
- Caves, Richard E, 1980. "Industrial Organization, Corporate Strategy and Structure," Journal of Economic Literature, American Economic Association, vol. 18(1), pages 64-92, March.
- Aoyama, Yuko & Izushi, Hiro, 2003. "Hardware gimmick or cultural innovation? Technological, cultural, and social foundations of the Japanese video game industry," Research Policy, Elsevier, vol. 32(3), pages 423-444, March.
- Vincent Frigant & Damien Talbot, 2005. "Technological Determinism and Modularity: Lessons from a Comparison between Aircraft and Auto Industries in Europe," Industry & Innovation, Taylor and Francis Journals, vol. 12(3), pages 337-355.
- Richard N. Langlois, 2001.
"The Vanishing Hand: the Changing Dynamics of Industrial Capitalism,"
- Richard N. Langlois, 2003. "The vanishing hand: the changing dynamics of industrial capitalism," Industrial and Corporate Change, Oxford University Press, vol. 12(2), pages 351-385, April.
- Richard N. Langlois, 2002. "The Vanishing Hand: the Changing Dynamics of Industrial Capitalism," Working papers 2002-21, University of Connecticut, Department of Economics.
- Narula,Rajneesh, 2001. "R&D Collaboration by SMEs: new opportunities and limitations in the face of globalisation," Research Memoranda 011, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).
If references are entirely missing, you can add them using this form.