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Architectural innovation and the emergence of a dominant design: The effects of strategic sourcing on performance

Woo-Yong Park, Young K. Ro and Namwoon Kim

Research Policy, 2018, vol. 47, issue 1, 326-341

Abstract: This study investigates four different sourcing strategies employed by firms in order to successfully deal with a new architectural innovation hitting the market. The four sourcing approaches reflect the varying degrees of internalization of component design and manufacturing: make, in-house design, long-term supplier, and new supplier, where make implies the highest and new supplier the lowest degree of internalization of the firm’s component sourcing in a spectrum. Comparing and contrasting the innovation performance of the four sourcing approaches in the pre- and post-dominant design eras, we suggest theoretical implications for the critical path of strategic sourcing decisions over time for a new architectural innovation. By doing so, we suggest an integrated framework of stage-contingent sourcing strategies and provide the associated empirical results that demonstrate normative strategic guidance for managers.

Keywords: Architectural innovation; Dominant design; Make strategy; In-house design; Long-term relationship; New supplier relationship (search for similar items in EconPapers)
Date: 2018
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