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Does interfirm modularity complement ignorance? A field study of software outsourcing alliances

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  • Amrit Tiwana

Abstract

Knowledge‐intensive outsourcing alliances present outsourcers with a tension between simultaneously sharing enough private knowledge to accomplish alliance goals and safeguarding such knowledge against misappropriation. This study explores the perspective that increasing interfirm modularity lowers the need for interfirm knowledge sharing. Put another way, modularity complements outsourcee ignorance. Analyses of data on 209 alliances between U.S. firms and software services firms in Russia, Ireland, and India provide strong support for this idea. Our theoretical elaboration and empirical testing of the complementarities between modularity and outsourcee ignorance has significant implications for strategy theory, which are also discussed. Copyright © 2008 John Wiley & Sons, Ltd.

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  • Amrit Tiwana, 2008. "Does interfirm modularity complement ignorance? A field study of software outsourcing alliances," Strategic Management Journal, Wiley Blackwell, vol. 29(11), pages 1241-1252, November.
    • Handle: RePEc:bla:stratm:v:29:y:2008:i:11:p:1241-1252
    DOI: 10.1002/smj.694
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    Cited by:

    1. Ravi Bapna & Alok Gupta & Gautam Ray & Shweta Singh, 2023. "Single-Sourcing vs. Multisourcing: An Empirical Analysis of Large Information Technology Outsourcing Arrangements," Information Systems Research, INFORMS, vol. 34(3), pages 1109-1130, September.
    2. Seyoum, Belay & Lian, Yunshan, 2018. "Market performance implications of modularization: Evidence from global auto firms operating in China," International Business Review, Elsevier, vol. 27(4), pages 852-866.
    3. Arun Rai & Xinlin Tang, 2014. "Research Commentary ---Information Technology-Enabled Business Models: A Conceptual Framework and a Coevolution Perspective for Future Research," Information Systems Research, INFORMS, vol. 25(1), pages 1-14, March.
    4. Peter M. Bican & Dirk Caspary & Carsten C. Guderian, 2023. "Cross-Border Dynamics of IP Modularity: International Patenting in LEDs and Lithium-Ion Secondary Battery Technology," Management International Review, Springer, vol. 63(2), pages 347-376, April.
    5. Efua Obeng & John Prescott & John Hulland & Robert Gilbert & James Maxham, 2015. "Retail capability systems," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(3), pages 103-122, December.
    6. Alperovych, Yan & Groh, Alexander & Quas, Anita, 2020. "Bridging the equity gap for young innovative companies: The design of effective government venture capital fund programs," Research Policy, Elsevier, vol. 49(10).
    7. Ceci, Federica & Prencipe, Andrea, 2013. "Does Distance Hinder Coordination? Identifying and Bridging Boundaries of Offshored Work," Journal of International Management, Elsevier, vol. 19(4), pages 324-332.
    8. Susan M. Mudambi & Stephen Tallman, 2010. "Make, Buy or Ally? Theoretical Perspectives on Knowledge Process Outsourcing through Alliances," Journal of Management Studies, Wiley Blackwell, vol. 47(s2), pages 1434-1456, December.
    9. Cheng, Liang-Chieh (Victor), 2011. "Assessing performance of utilizing organizational modularity to manage supply chains: Evidence in the US manufacturing sector," International Journal of Production Economics, Elsevier, vol. 131(2), pages 736-746, June.
    10. Efua Obeng & John E. Prescott & John Hulland & Robert Gilbert & James Maxham, 2015. "Retail capability systems," AMS Review, Springer;Academy of Marketing Science, vol. 5(3), pages 103-122, December.
    11. Un, C. Annique & Rodríguez, Alicia, 2018. "Learning from R&D outsourcing vs. learning by R&D outsourcing," Technovation, Elsevier, vol. 72, pages 24-33.
    12. Jiang Wei & Yang Yang & Sali Li, 2021. "Mirror or no mirror? Architectural design of cross-border integration of Chinese multinational enterprises," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1399-1430, December.
    13. Amrit Tiwana & Stephen K. Kim, 2015. "Discriminating IT Governance," Information Systems Research, INFORMS, vol. 26(4), pages 656-674, December.
    14. Anil Nair & Mehdi Sharifi Khobdeh & Aydin Oksoy & Orhun Guldiken & Chris H. Willis, 2023. "A review of strategic management research on India," Asia Pacific Journal of Management, Springer, vol. 40(4), pages 1341-1392, December.

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