Product Architectures and Sourcing Decisions

Park, Woo‐Yong; Ro, Young K.

doi:10.1177/0149206311430260

Cited by 15 publications

(32 citation statements)

References 64 publications

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“…Previous studies have predominantly adopted the focal firm's perspective and examined how firm capability and resources can explain the boundary choices of knowledge production (Aggarwal and Hsu, 2009;Argyres and Zenger, 2012;Mayer and Salomon, 2006). This research complements the existing views by adopting the external partners' perspective within the KBV framework to explicate the knowledge governance choice (Park and Ro, 2013). Therefore, this study reconsiders the "paradox of openness" phenomenon by adopting the perspective of the external firm and its motivation for knowledge transfer and impact on the focal firm's mode of R&D sourcing in a weak IPR environment.…”

Section: Theoretical Contributionsmentioning

confidence: 92%

“…technological experience (Eggers, 2012;Park and Ro, 2013;Zenger et al, 2011). In general, "[e]xperience is what transpires in the organization as it performs its task.…”

Section: Market and Hierarchies As Knowledge Governance Mechanismsmentioning

confidence: 99%

“…Our results highlight how a firm's product and patenting experience can distinctively affect its reliance on external R&D and translate into different routines and boundaries for their knowledge creation activities. Therefore, it contributes to the growing body of literature on product innovation and knowledge governance (e.g., Kapoor and Adner, 2012;Nickerson and Zenger, 2004;Park and Ro, 2013;Wolter and Veloso, 2008) by explicating how a focal firm's prior technological experience associated with different types of knowledge attributes and appropriation hazards motivates or inhibits the external partners to transfer knowledge and provide R&D sourcing serves to the focal firm. Second, this study adds new insights into how hightech firms make knowledge sourcing and governance decisions as predicted by the KBV.…”

Section: Theoretical Contributionsmentioning

confidence: 99%

See 2 more Smart Citations

The Paradox of Openness: How Product and Patenting Experience Affect R&D Sourcing in China?

Wang¹,

Libaers²,

Park³

2016

J of Product Innov Manag

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External R&D sourcing may help firms compete in an environment characterized by rapid technological changes. Yet, prior studies have produced conflicting findings on how a firm's technological experience affects the extent to which the firm engages in external R&D sourcing. Although many highlight that firms with extensive technological experience are equipped with more technological knowledge, collaborative skills, and absorptive capacity, encouraging greater levels of external R&D, others suggest the opposite due to potential exchange hazards and partnership conflicts. Adopting an external partner's perspective, the current study reconsiders this “paradox of openness” by analyzing how a focal firm's product experience and patenting experience affect an external partner's tendency to provide external R&D services to the focal firm. Specifically, this study explore how a focal firm's knowledge protectiveness and tacitness embedded in its product and patenting experience influences the external partners' motivation for knowledge transfer. This study predicts that a firm's product experience increases the focal firm's external R&D sourcing because it provides high levels of knowledge tacitness and external openness and can encourage external partners to share and exchange knowledge with the focal firm. In contrast, a firm's patenting experience decreases the focal firm's external R&D sourcing because it denotes knowledge explicitness and protectiveness and may discourage external partners to share and exchange knowledge with the focal firm. This study further predicts that patenting experience has a negative moderating effect on the relationship between product experience and external R&D sourcing. Using a data set of 575 high‐tech firms in China, this study finds support for our predictions. Our findings contribute to the growing literature on the knowledge‐based view and technology entrepreneurship in emerging markets.

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Section: Theoretical Contributionsmentioning

confidence: 92%

“…technological experience (Eggers, 2012;Park and Ro, 2013;Zenger et al, 2011). In general, "[e]xperience is what transpires in the organization as it performs its task.…”

Section: Market and Hierarchies As Knowledge Governance Mechanismsmentioning

confidence: 99%

Section: Theoretical Contributionsmentioning

confidence: 99%

See 1 more Smart Citation

The Paradox of Openness: How Product and Patenting Experience Affect R&D Sourcing in China?

Wang¹,

Libaers²,

Park³

2016

J of Product Innov Manag

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“…Because the required knowledge is often inherited from other industries, the literature on technology and strategic management has underscored the importance of pursuing an outsourcing strategy. This strategy allows firms to search for new knowledge beyond their internal boundaries (Powell, Koput, & Smith-Doerr, 1996;Womack, Jones, & Roos, 1990) and helps firms develop required capabilities by reconfiguring information-processing arrangements (Abecassis-Moedas & Benghozi, 2012;Ahuja & Lampert, 2001;Jaspers, Prencipe, & Ende, 2012;Jones & Hill, 1988;Leonard-Barton, 1992;Park & Ro, 2013). Considering the benefits of the outsourcing strategy in the face of an innovation shock, the current study's focus is on the role of using the outsourcing strategy for environmental performance improvement.…”

Section: Introductionmentioning

confidence: 99%

Innovation shock, outsourcing strategy, and environmental performance: The roles of prior green innovation experience and knowledge inheritance

2019

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To investigate under what conditions an outsourcing strategy can show superior environmental performance, one stream of scholars has underscored the importance of prior green innovation experience, and another stream of scholars has underscored the importance of the in‐house possession of outsourced component knowledge. However, the empirical findings regarding the positive role of both scholarly streams when studied separately are mixed and sometimes contradictory. This study bridges these two distinct but related streams and suggests that prior green innovation experience and in‐house knowledge regarding outsourced components play a complementary role in enhancing environmental performance. The U.S. hybrid electric vehicle market lends support to the argument of this study. In so doing, this study increases our understanding of the role of prior green innovation experience and outsourced component knowledge on environmental performance while pursuing an outsourcing strategy. This study also provides guidance for managers and policymakers on how to achieve superior environmental performance in outsourcing.

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“…These parallel processes of codification and uncertainty reduction have two important implications for the evolution of vertical firm boundaries. First, better understanding and articulation of the principles governing product functionality and organizational activities open up for a contractually based division of labor that extends beyond new venture boundaries (Brusoni, Prencipe, & Pavitt, 2001;Park & Ro, 2013;Ulrich, 1995). What can be described and communicated in writing can often also be made part of contractual agreements between firms.…”

Section: Vertical Boundary Evolution In the New High Technology Venmentioning

confidence: 99%

The evolution of vertical boundaries in new high technology ventures

Hashai

Zander

2018

Strategic Entrepreneurship

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Research Summary We argue that interrelated processes of knowledge codification and uncertainty reduction lead to the contraction of vertical firm boundaries of new high technology ventures over time. Consistent with our arguments, we show that, over time, outsourcing of R&D is slower than outsourcing of manufacturing, while outsourcing of marketing and sales is the fastest. Further, we show heterogeneity in the pace of vertical boundary contraction, where new high technology ventures that engage in knowledge exploration and those whose founders have strong technological backgrounds exhibit slower vertical boundary contraction. Typically, the slowdown in the pace of outsourcing, once again, is the strongest for R&D and the weakest for marketing and sales. Managerial Summary Cash‐constrained managers in new high technology ventures often wish to outsource their R&D, manufacturing, and marketing and sales activities, but initially may be limited in doing so. This likely happens because these new ventures rely heavily on founders' tacit knowledge about new products and how to commercialize them and because uncertainty makes it difficult to reach contractual agreements with external partners. We show that with time, such outsourcing becomes increasingly possible, especially for marketing and sales activities but less so for R&D. Yet, when new high technology ventures experiment with new products and in new high technology ventures whose founders have technological backgrounds, the pace of outsourcing is slower.

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Product Architectures and Sourcing Decisions

Cited by 15 publications

References 64 publications

The Paradox of Openness: How Product and Patenting Experience Affect R&D Sourcing in China?

The Paradox of Openness: How Product and Patenting Experience Affect R&D Sourcing in China?

Innovation shock, outsourcing strategy, and environmental performance: The roles of prior green innovation experience and knowledge inheritance

The evolution of vertical boundaries in new high technology ventures

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