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Trade-offs in Make-Buy Decisions: Exploring Operating Realities of Knowledge Integration and Innovation
Department of Management and Engineering, Linköping University, Sweden; Department of Industrial Economics and Management, KTH, Sweden.
University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Development, IT and Land Management, Industrial economics. University of Gävle, Center for Logistics and Innovative Production. (Industriell ekonomi)ORCID iD: 0000-0001-8238-034X
2011 (English)In: Knowledge Integration and Innovation: critical challenges facing international technology-based firms / [ed] Christian Berggren, Anna Bergek, Lars Bengtsson, Michael Hobday, and Jonas Söderlund, Oxford: Oxford University Press, 2011, 1, p. 228-245Chapter in book (Refereed)
Abstract [en]

This study explores trade-offs particularly relevant for firms that compete on innovation, but which have outsourced manufacturing and therefore need to integrate knowledge by involving their new contract manufacturers in the innovation and development activities of outsourced parts. The empirical analysis is based on survey data from 127 manufacturing firms in Sweden. The analysis shows that trade-offs remain in make-buy decisions, especially between cost and flexibility, and cost and speed. When comparing different groups of firms, the results also show that knowledge integration in terms of collaboration between outsourcing firms and their suppliers reduces some trade-offs but intensifies others. The chapter concludes that technologybased firms that compete on innovation often have to involve their new suppliers in the innovation and development activities of outsourced parts. However, when doing so, they have to consider that they cannot 'have it all' as the existing management literature often claims.

Place, publisher, year, edition, pages
Oxford: Oxford University Press, 2011, 1. p. 228-245
Keywords [en]
Competitive priorities, Operations strategy, Outsourcing, Supply chain management, Trade-offs
National Category
Mechanical Engineering
Identifiers
URN: urn:nbn:se:hig:diva-9696DOI: 10.1093/acprof:oso/9780199693924.003.0010Scopus ID: 2-s2.0-79961012050ISBN: 978-019969392-4 (print)ISBN: 978-019173058-0 (print)OAI: oai:DiVA.org:hig-9696DiVA, id: diva2:427710
Note

DOI: 10.1093/acprof:oso/9780199693924.001.0001 (volume)

Available from: 2011-06-28 Created: 2011-06-28 Last updated: 2018-03-13Bibliographically approved

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Bengtsson, Lars

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CiteExportLink to record
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