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| Author: | Gassmann, O. (et al.) |
| Title: | Crossing the industry-line: Breakthrough innovation through cross-industry alliances with 'non-suppliers' |
| Journal: | Long Range Planning
2010 : OCT/DEC, VOL. 43:5-6, p. 639-654 |
| Index terms: | manufacturing cars alliances vertical integration suppliers technological innovation R&D Germany |
| Freeterms: | automobile industry |
| Language: | eng |
| Abstract: | Alliances entail mutual dependence on partners' complementary resources, which is especially true for vertical R&D alliances with the development of technological innovation depending mainly on suppliers' R&D results. In such settings, alliances may be prone to rigidities as to developing breakthrough innovations. This article illustrates how the automobile manufacturer BMW reduced its dependence on its established suppliers, engaging in a cross-industry alliance with a 'non-supplier' to successfully develop a breakthrough innovation. Based on the case, the strategic and operational challenges inherent in cross-industry R&D alliances with non-suppliers are discussed. The findings refer to that the success of cross-industry alliances depends on specific actions at the strategic and operational levels. |
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