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The Trade-off Between Efficiency and Learning in Interorganizational Relationships for Product Development

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  • Maurizio Sobrero

    (Department of Management, University of Bologna, 40125, Bologna, Italy)

  • Edward B. Roberts

    (Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02142-1347)

Abstract

This paper analyzes the performance implications of interorganizational relationships in the development of technological innovations, focusing on the characteristics of the tasks partitioned between a manufacturer and its suppliers in the development of new products. We identify two critical dimensions: (1) the design scope and (2) the level of task interdependency. The design scope dimension characterizes the type of problem-solving activities outsourced by the manufacturer. The level of task interdependency dimension characterizes the influence of any given supplier-manufacturer interaction on other activities within an overall innovation process. Data analyses on 50 supplier-manufacturer relationships drawn from three new product development projects show that the type of problem-solving activities being partitioned and their level of interdependency with the rest of the project are important predictors of performance outcomes of the relationship, controlling for contractual differences. Further, the analyses demonstrate a clear trade-off between short-term efficiency-increasing and longer-term learning-enhancing outcomes.

Suggested Citation

  • Maurizio Sobrero & Edward B. Roberts, 2001. "The Trade-off Between Efficiency and Learning in Interorganizational Relationships for Product Development," Management Science, INFORMS, vol. 47(4), pages 493-511, April.
    • Handle: RePEc:inm:ormnsc:v:47:y:2001:i:4:p:493-511
    DOI: 10.1287/mnsc.47.4.493.9828
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    11. Hadjielias, Elias & Christofi, Michael & Vrontis, Demetris & Khan, Huda, 2022. "Social impact through family firms’ interorganizational relationships within a community and a cooperative: An embedded view of stewardship," Journal of Business Research, Elsevier, vol. 139(C), pages 584-601.
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    17. Klus, Milan F. & Lohwasser, Todor S. & Holotiuk, Friedrich & Moormann, Jürgen, 2018. "Strategic alliances between banks and fintechs for digital innovation: Motives to collaborate and types of interaction," Discussion Papers of the Institute for Organisational Economics 6/2018, University of Münster, Institute for Organisational Economics.
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    21. Liu, Dewen & Han, Shenghao & Zhang, Jieqiong, 2022. "The golden mean: Research on the mechanism of customer participation in employee service innovation," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
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    23. Cen, Ling & Maydew, Edward L. & Zhang, Liandong & Zuo, Luo, 2017. "Customer–supplier relationships and corporate tax avoidance," Journal of Financial Economics, Elsevier, vol. 123(2), pages 377-394.
    24. Eric (Er) Fang, 2011. "The Effect of Strategic Alliance Knowledge Complementarity on New Product Innovativeness in China," Organization Science, INFORMS, vol. 22(1), pages 158-172, February.
    25. Gerwin, Donald, 2006. "Buyer-vendor relations for components: The extreme example of custom integrated circuits," Research Policy, Elsevier, vol. 35(5), pages 673-690, June.

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