Make or buy of IT-enabled innovation
AbstractIT-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.
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Bibliographic InfoPaper provided by Copenhagen Business School, Department of Informatics in its series Working Papers with number 2004-2.
Length: 36 pages
Date of creation: 20 Sep 2004
Date of revision:
Contact details of provider:
Postal: Department of Informatics, Copenhagen Business School, Howitzvej 60, DK-2000 Frederiksberg, Denmark
Phone: +45 3815 3815
Web page: http://www.cbs.dk/departments/inf/
More information through EDIRC
IT-enabled innovation; outsourcing; technological regime; strategic posture; first-mover advantages; financial services; online brokerage;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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.:
- Robertson, Paul L. & Langlois, Richard N., 1995.
"Innovation, networks, and vertical integration,"
Elsevier, vol. 24(4), pages 543-562, July.
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