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| Author: | Parmigiani, A. Mitchell, W. |
| Title: | Complementarity, capabilities, and the boundaries of the firm: the impact of within-firm and interfirm expertise on concurrent sourcing of complementary components |
| Journal: | Strategic Management Journal
2009 : OCT, VOL: 30:10, p. 1065-1091 |
| Index terms: | knowledge vertical integration |
| Freeterms: | complementarity firm capabilities |
| Language: | eng |
| Abstract: | Conflicting arguments arise in the theories of the firm on how complementarities btw. two or more components (hereafter as: cmpts.) affect firms' knowledge and production boundaries. This study examines concurrent sourcing (henceforth as: c-srng.), arising when firms both make and buy the same cmpts. It is argued that c-srng. complementary cmpts. becomes more common in two cases: i. when firms have relevant knowledge about the cmpts. in conjunction with suppliers and, maybe more surprisingly, ii. within the firm. The results suggest that firms often need to make in order to know, but can partially outsource if their expertise suffices. |
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