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| Author: | Hoetker, G. |
| Title: | How much you know versus how well I know you: selecting a supplier for a technically innovative component |
| Journal: | Strategic Management Journal
2005 : JAN, VOL. 26:1, p. 75-96 |
| Index terms: | innovation suppliers |
| Language: | eng |
| Abstract: | How do companies select a supplier for an innovative component? Three literatures speak to this question. Transaction cost economics focuses on the value of internalization, the literature on inter-company relationships on the value of past relationships, and company capabilities literature on the value of superior capabilities. Choosing a supplier means choosing a bundle of these characteristics - internal vs. external, amount of prior transactions, and capabilities - but no study has integrated all these characteristics, making it impossible to understand the trade-offs involved either theoretically or managerially. The paper proposes and tests a model intergrating all three factors, allowing us to understand the trade-offs involved. |
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