Make or buy of IT-enabled innovation
IT-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.
|Date of creation:||20 Sep 2004|
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- Paul L. Robertson & Richard N. Langlois, 1994.
"Innovation, Networks, and Vertical Integration,"
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