Outsourcing New Product Development Fostered by Disruptive Technological Innovation: A Decision-Making Model

Abstract

Several studies in the literature have addressed the issue of outsourcing in relation to New Product Development (NPD) or R&D processes. However, the issue of how the outsourcing decisions in the NPD process are best undertaken by the firms has not been fully addressed. Understanding factors influencing the decision of innovation outsourcing more likely remains a need within the current research stream. As it stands, the existing literature takes account of neither a complete set of decision making dimensions, nor the specificity of the NPD process, especially when a disruptive technology fosters product innovation. Although these studies have analysed the antecedents of the innovation outsourcing, the decision-making dimensions are not considered in an integrated multidimensional decision-making model, that considers the inter-related effects of their contemporaneous consideration. There are, therefore, significant gaps in the literature, which this article intends to fill. Our study aims to understand how organisations approach outsourcing decisions relating to NPD activities in technology intensive industries, and the performance implications of these decisions. The context of the study is that of aircraft industry. Therefore, this article discusses the findings of an empirical research that explores an embedded and in-depth longitudinal case study, namely, the Boeing 787-8 programme (the first model of the B787 Dreamliner programme). This new aircraft is a disruptive technology product innovation within the industry because it adopts new material technologies that make it possible to meet future customer needs. The programme has radically changed the partnership model adopted in the industry’s supply chain. The aim of the empirical research is to verify how the proposed model works to investigate outsourcing strategies related to the Boeing 787 Dreamliner programme. The research question that we aim to answer is: which strategic dimensions in a decision-making model are able to extensively and thoroughly address the outsourcing decisions relating to NPD activities given the hypothesis that a disruptive technology fosters product innovation?

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