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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.

Suggested Citation

  • Markus C. Becker & Francesco Zirpoli, 2003. "Organising new product development Knowledge hollowing-out and knowledge integration," DRUID Working Papers 03-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  • Handle: RePEc:aal:abbswp:03-05

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    References listed on IDEAS

    1. 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.
    2. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. Minkler, Alanson P, 1993. "The Problem with Dispersed Knowledge: Firms in Theory and Practice," Kyklos, Wiley Blackwell, vol. 46(4), pages 569-587.
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    Cited by:

    1. Markus C. Becker, 2012. "Distributed Knowledge and its Coordination," Chapters,in: Handbook of Knowledge and Economics, chapter 20 Edward Elgar Publishing.
    2. Lampón, Jesús F. & Cabanelas, Pablo & Frigant, Vincent, 2017. "The new automobile modular platforms: from the product architecture to the manufacturing network approach," MPRA Paper 79160, University Library of Munich, Germany.
    3. Jesús F. Lampón & Pablo Cabanelas & Javier González Benito, 2015. "The impact of implementation of a modular platform strategy in automobile manufacturing networks," Working Papers. Collection B: Regional and sectoral economics 1502, Universidade de Vigo, GEN - Governance and Economics research Network.
    4. repec:wsi:ijitmx:v:14:y:2017:i:05:n:s0219877017500274 is not listed on IDEAS
    5. Shalini R. Tiwari & Rajen Gupta, 2012. "Dynamics of Knowledge Integration in a Project Network," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 11(2), pages 143-169, December.
    6. Berggren, Christian & Magnusson, Thomas & Sushandoyo, Dedy, 2015. "Transition pathways revisited: Established firms as multi-level actors in the heavy vehicle industry," Research Policy, Elsevier, vol. 44(5), pages 1017-1028.
    7. Elena Revilla, 2008. "Antecedents and consequences of knowledge integration in product development. An empirical evidence," Working Papers Economia wp08-13, Instituto de Empresa, Area of Economic Environment.

    More about this item


    New product development; FIAT Auto; knowledge integration systems integration; modularity; knowledge hollowing-out; resource-based view;

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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