search query: @indexterm Costs / total: 1520
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| Author: | Reitzig, M. Wagner, S. |
| Title: | The hidden costs of outsourcing: evidence from patent data |
| Journal: | Strategic Management Journal
2010 : NOV, VOL. 31:11, p. 1183-1201 |
| Index terms: | patents outsourcing costs |
| Freeterms: | knowledge-based view |
| Language: | eng |
| Abstract: | Based on patent data for appr. 500 firms over 20 years, developed is the recent theory on firm boundaries with testing these propositions for the first time. Evidence for the existence of knowledge complementarities is provided btw. vertically linked activities in the value chain of a firm by showing firms facing increasing (decreasing) performance in performing downstream activities (i.e. patent litigation) the less (more) they outsource related upstream activities (i.e. patent filing). It is proposed and empirically shown that vertical integration benefits via learning differ from vertical outsourcing costs (herein as: o-costs) through forgetting. Firms are shown to be able to partly offset these hidden o-costs by sourcing similar upstream products from internal and external suppliers. |
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