IDEAS home Printed from https://ideas.repec.org/p/aal/abbswp/03-05.html
   My bibliography  Save this paper

Organising new product development Knowledge hollowing-out and knowledge integration

Author

Listed:
  • Markus C. Becker
  • Francesco Zirpoli

Abstract

The paper analyses the organization of the new product development process at FIAT from a resource-based perspective. The focus is on organizational resources for integrating dispersed specialist knowledge required in the development of complex products. The analysis shows how the application of a resource-based perspective is able to uncover negative long-term effects of outsourcing on the knowledge base (hollowing out), despite beneficial short-term effects on cost.

Suggested Citation

  • 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.
    • Handle: RePEc:aal:abbswp:03-05
    as

    Download full text from publisher

    File URL: https://wp.druid.dk/wp/20030005.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cusumano, Michael A. & Nobeoka, Kentaro, 1992. "Strategy, structure and performance in product development: Observations from the auto industry," Research Policy, Elsevier, vol. 21(3), pages 265-293, June.
    2. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    3. D'Adderio, Luciana, 2001. "Crafting the virtual prototype: how firms integrate knowledge and capabilities across organisational boundaries," Research Policy, Elsevier, vol. 30(9), pages 1409-1424, December.
    4. Fine, Charles H. & Whitney, Daniel E., 1996. "Is the make-buy decision process a core competence?," Working papers #140-96. Working paper (S, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    5. Massimo Egidi, 1995. "Routines, Hierarchies of Problems, Procedural Behaviour: Some Evidence fom Experiments," CEEL Working Papers 9503, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    6. Kim B. Clark, 1989. "Project Scope and Project Performance: The Effect of Parts Strategy and Supplier Involvement on Product Development," Management Science, INFORMS, vol. 35(10), pages 1247-1263, October.
    7. Alanson P. Minkler, 1993. "The Problem with Dispersed Knowledge: Firms in Theory and Practice," Kyklos, Wiley Blackwell, vol. 46(4), pages 569-587, November.
    8. Minkler, Alanson P, 1993. "The Problem with Dispersed Knowledge: Firms in Theory and Practice," Kyklos, Wiley Blackwell, vol. 46(4), pages 569-587.
    9. Michael A. Cusumano & Akira Takeishi, 1991. "Supplier relations and management: A survey of Japanese, Japanese‐transplant, and U.S. auto plants," Strategic Management Journal, Wiley Blackwell, vol. 12(8), pages 563-588, November.
    10. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jesús Lampón & Pablo Cabanelas & Vincent Frigant, 2017. "The new automobile modular platforms: from the product architecture to the manufacturing network approach?," Post-Print hal-03187886, HAL.
    2. Berggren, Christian & Magnusson, Thomas & Sushandoyo, Dedy, 2015. "Transition pathways revisited: Established firms as multi-level actors in the heavy vehicle industry," Research Policy, Elsevier, vol. 44(5), pages 1017-1028.
    3. Shivakumar S. Malagihal, 2021. "Strategic Options for Automobile OEMs of Indian Origin to have Sustained Competitive Advantage: A Case of Tata Motors," International Journal of Global Business and Competitiveness, Springer, vol. 16(2), pages 139-152, December.
    4. Vanajah Siva & Ida Gremyr & Árni Halldórsson, 2018. "Organising Sustainability Competencies through Quality Management: Integration or Specialisation," Sustainability, MDPI, vol. 10(5), pages 1-14, April.
    5. Jesús F. Lampón & Pablo Cabanelas & Javier González Benito, 2015. "The impact of implementation of a modular platform strategy in automobile manufacturing networks," Working Papers. Collection B: Regional and sectoral economics 1502, Universidade de Vigo, GEN - Governance and Economics research Network.
    6. Alireza Javanmardi Kashan & Kavoos Mohannak & Mirko Perano & Gian Luca Casali, 2018. "A Discovery of Multiple Levels of Open Innovation in Understanding the Economic Sustainability. A Case Study in the Manufacturing Industry," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    7. Markus C. Becker, 2012. "Distributed Knowledge and its Coordination," Chapters, in: Richard Arena & Agnès Festré & Nathalie Lazaric (ed.), Handbook of Knowledge and Economics, chapter 20, Edward Elgar Publishing.
    8. Alireza Javanmardi Kashan & Kavoos Mohannak, 2017. "The Role of Knowledge Integration in Capability Development and Emergence of Innovation Ecosystem," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(05), pages 1-18, October.
    9. Shalini R. Tiwari & Rajen Gupta, 2012. "Dynamics of Knowledge Integration in a Project Network," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 11(2), pages 143-169, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Markus C. Becker, 2012. "Distributed Knowledge and its Coordination," Chapters, in: Richard Arena & Agnès Festré & Nathalie Lazaric (ed.), Handbook of Knowledge and Economics, chapter 20, Edward Elgar Publishing.
    2. Akira Takeishi, 2002. "Knowledge Partitioning in the Interfirm Division of Labor: The Case of Automotive Product Development," Organization Science, INFORMS, vol. 13(3), pages 321-338, June.
    3. Karl T. Ulrich & David J. Ellison, 1999. "Holistic Customer Requirements and the Design-Select Decision," Management Science, INFORMS, vol. 45(5), pages 641-658, May.
    4. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    5. Diego Iribarren, 2003. "From Economic Activity to Understanding Spaces," Econometrics 0303008, University Library of Munich, Germany.
    6. Foss Kirsten & Foss Nicolai & Klein Peter G. & Klein Sandra K., 2002. "Heterogeneous Capital, Entrepreneurship, and Economic Organization," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 12(1), pages 1-20, March.
    7. Arie Y Lewin & Silvia Massini & Carine Peeters, 2020. "Absorptive capacity, socially enabling mechanisms, and the role of learning from trial and error experiments: A tribute to Dan Levinthal’s contribution to international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1568-1579, December.
    8. Richard P. Adelstein, 2003. "Knowledge and Power in the Mechanical Firm: Planning for Profit in Austrian Perspective," Wesleyan Economics Working Papers 2005-015, Wesleyan University, Department of Economics.
    9. Raji Srinivasan & Thomas H. Brush, 2006. "Supplier Performance in Vertical Alliances: The Effects of Self-Enforcing Agreements and Enforceable Contracts," Organization Science, INFORMS, vol. 17(4), pages 436-452, August.
    10. Arvanitis, Spyros & Hollenstein, Heinz & Stucki, Tobias, 2016. "Does the explanatory power of the OLI approach differ among sectors and business functions? Evidence from firm-level data," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-46.
    11. Petra Andries & Dirk Czarnitzki, 2014. "Small firm innovation performance and employee involvement," Small Business Economics, Springer, vol. 43(1), pages 21-38, June.
    12. Patrick Regnér & Udo Zander, 2011. "Knowledge and Strategy Creation in Multinational Companies," Management International Review, Springer, vol. 51(6), pages 821-850, December.
    13. Ana Teresa Tavares & Stephen Young, 2006. "Sourcing patterns of foreign-owned multinational subsidiaries in Europe," Regional Studies, Taylor & Francis Journals, vol. 40(6), pages 583-600.
    14. A. Willem & M. Buelens, 2003. "Making Competencies Cross Business Unit Boundaries: The Interplay between Inter-Unit Coordination, Trust and Knowledge Transferability," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/176, Ghent University, Faculty of Economics and Business Administration.
    15. Lukasz Puslecki & Michael Czekajlo & Mateusz Puslecki, 2021. "How Innovation Cooperation Supports the Improvement of Health Care in the CEE Region: The Case of ECMO for Greater Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 1074-1095.
    16. Nobeoka, KentarÅ . & Cusumano, Michael A., 1954-, 1993. "Multi-project management : strategy and organization in automobile product development," Working papers 3609-93., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    17. Fahy, John, 2002. "A resource-based analysis of sustainable competitive advantage in a global environment," International Business Review, Elsevier, vol. 11(1), pages 57-77, February.
    18. McGuinness, Martina & Demirbag, Mehmet & Bandara, Sasanka, 2013. "Towards a multi-perspective model of reverse knowledge transfer in multinational enterprises: A case study of Coats plc," European Management Journal, Elsevier, vol. 31(2), pages 179-195.
    19. Xiao Zhang & Luqun Xie & Jiatao Li & Li Cheng, 2022. "“Outside in”: Global demand heterogeneity and dynamic capabilities of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 709-722, June.
    20. Chan, Jin Hooi & Reiner, David, 2019. "Evolution in inter-firm governance along the transport biofuel value chain in Maritime Silk Road countries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 268-282.

    More about this item

    Keywords

    New product development; FIAT Auto; knowledge integration systems integration; modularity; knowledge hollowing-out; resource-based view;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aal:abbswp:03-05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Keld Laursen (email available below). General contact details of provider: https://www.druid.dk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.