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Organising new product development Knowledge hollowing-out and knowledge integration

  • Markus C. Becker
  • Francesco Zirpoli

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.

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File URL: http://www3.druid.dk/wp/20030005.pdf
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Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 03-05.

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Date of creation: 2003
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Handle: RePEc:aal:abbswp:03-05
Contact details of provider: Web page: http://www.druid.dk/

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  1. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 625-645, December.
  2. 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.
  3. 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.
  4. Minkler, Alanson P, 1993. "The Problem with Dispersed Knowledge: Firms in Theory and Practice," Kyklos, Wiley Blackwell, vol. 46(4), pages 569-87.
  5. 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.
  6. 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.
  7. 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.
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