Innovation risks of strategic outsourcing

Hoecht, Andreas Herbert; Trott, Paul

doi:10.1016/j.technovation.2005.02.004

Cited by 176 publications

(139 citation statements)

References 28 publications

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“…This explanation is in line with the assertion that strategic and radical innovations are likely to be found in inter-organizational relationships and networks where firms seek access to resources and capabilities that cannot be found internally (Dewar and Dutton 1986;Henderson and Clark 1990), also known as complementary assets (Teece 1986). For example, inter-organizational networks can facilitate the development of the joint research capability required for strategic innovation, which is greater than the research capability that the client firm can develop on its own (Powell 1996;Hoecht and Trott 2006). A joint research capability may still lead to a continuous bargaining process between the client and supplier about the appropriation of the value created (Mol 2005); however, the presence of a contractual mechanism in the form of a gainsharing scheme, as part of the client contract portfolio, is likely to increase transparency regarding commitment and profit sharing involved in such a setting.…”

Section: Discussion and Contributionsmentioning

confidence: 99%

Strategic innovation through outsourcing: The role of relational and contractual governance

Oshri¹,

Kotlarsky

Gerbasi

2015

The Journal of Strategic Information Systems

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Section: Discussion and Contributionsmentioning

confidence: 99%

Strategic innovation through outsourcing: The role of relational and contractual governance

Oshri¹,

Kotlarsky

Gerbasi

2015

The Journal of Strategic Information Systems

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“…In fact, additional alliances with the same partner may provide only redundant information and could result in inertia (Gulati, 1995). Hoecht and Trott (2006) go further by highlighting the risk of becoming dependent on a partner (e.g., hold up).…”

Section: Diversity Of Partnership Networkmentioning

confidence: 99%

The importance of diverse collaborative networks for the novelty of product innovation

2007

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Competition today is driving firms to introduce products with a higher degree of novelty. Consequently, there is a growing need to understand the critical success factors behind more novel product innovations. This paper theoretically and empirically analyzes the role of different types of collaborative networks in achieving product innovations and their degree of novelty. Using data from a longitudinal sample of Spanish manufacturing firms, our results show that technological collaborative networks are of crucial importance in achieving a higher degree of novelty in product innovation. Continuity of collaboration and the composition of the collaborative network are highly significant dimensions. Collaboration with suppliers, clients and research organizations in this order have a positive impact on the novelty of innovation, while collaboration with competitors has a negative impact. The greatest positive impact on the degree of innovation novelty comes from collaborative networks comprising different types of partners.

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“…(2007) reported that the greater the uniqueness of the competence of a firm, the greater the stringent measures required to protect it. Trott (2006a and2006b) claimed that legal contracts may only offer shortterm protection to a firm's information and knowledge. Baccara (2007) stressed that close relationships with external contractors and service providers could result in unintentional information leakage.…”

Section: Ikl Through Interactions In Outsourcing Activitiesmentioning

confidence: 99%

“…Information/Knowledge leakage triggered by organisational incentives (Zhang, 2011;Anand and Goyal, 2009;Bonte and Wiethaus 2007;Harhoff et al, 2003;Lee, 2002) Information/Knowledge leakage triggered by individual incentives (Faisal et al, 2007) Information/Knowledge leakage through outsourcing/joint-venture/sub-contracting activities (Faisal et al, 2007;Hoecht and Trott, 2006a;Hoecht and Trott, 2006b) Information/Knowledge leakage arising from employee movement/people interaction (Mohamed et al, 2006;Kovach et al, 2004) From the literature, we identified that both academics and practitioners paid little attention to information and knowledge leakage management. IKL may represent a major loss to any firm if it is not managed properly.…”

Section: Findings Reported Bymentioning

confidence: 99%

Information and Knowledge Leakage in Supply Chain

2015

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Abstract:The current world of post industrial value generation sees companies increasingly analyzing their internal operations against their external organizations to identify supply/demand fluctuations along the supply chain. Within these integrated relationships between internal and external parties in the supply chain, knowledge and information have become very important production resources. The existence and success of an increasing number of organizations strongly depend on their capabilities to utilize knowledge and information for profit generation. By managing more efficient information sharing, the volume of company confidential information passing through the supply chain increases, and this brings about more incidences of knowledge leakage and information leakage. A survey by PricewaterhouseCoopers in 2014 shows information security spending over the next 12 months would increase 60.27 percent in Asia and 48.98 percent in all regions. This emphasizes the importance of information privacy and therefore the necessity to study the information and knowledge leakage in integrated supply chain. The objectives of this study are to investigate the factors triggering information and knowledge leakage and create a mitigation framework to soften the impact of leakages on performance. The above objectives will be met by formulating and examining several hypotheses of a conceptualized information leakage (IL) and knowledge leakage (KL) framework. A case study derived from a structured interview is adopted as a methodology in this research. As a result, this paper contributes a novel theoretical model that characterizes information and knowledge leakage in an integrated supply chain. Therefore, it also adds new knowledge of managing information and knowledge leakage to supply chain management.

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Innovation risks of strategic outsourcing

Cited by 176 publications

References 28 publications

Strategic innovation through outsourcing: The role of relational and contractual governance

Strategic innovation through outsourcing: The role of relational and contractual governance

The importance of diverse collaborative networks for the novelty of product innovation

Information and Knowledge Leakage in Supply Chain

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