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Make or buy of IT-enabled innovation

Author

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  • Mahnke, Volker

    (Department of Informatics, Copenhagen Business School)

Abstract

IT-enabled innovations are of increasing importance for competitive success in most sectors today. This paper offers a novel theoretical and empirically illustrated explanation of why IT-outsourcing strategies differ between innovative first-movers, fast followers and late entrants. In particular, an analysis of three companies in the financial sector - Charles Schwab, Fidelity Investment, and Merrill Lynch - reveals that governance choices influence a company’s ap-propriable learning curve advantage to slow down or speed up adoption and imitation of IT-enabled innovation. Moreover, we discuss the implications of governance choices in techno-logical environments characterised by either accumulation or disruption.

Suggested Citation

  • Mahnke, Volker, 2004. "Make or buy of IT-enabled innovation," Working Papers 2004-2, Copenhagen Business School, Department of Informatics.
    • Handle: RePEc:hhs:cbsinf:2004_002
    as

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    File URL: http://openarchive.cbs.dk/cbsweb/handle/10398/6488
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    IT-enabled innovation; outsourcing; technological regime; strategic posture; first-mover advantages; financial services; online brokerage;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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