Journal
INDUSTRIAL MARKETING MANAGEMENT
Volume 38, Issue 4, Pages 394-403Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.indmarman.2009.04.001
Keywords
New product development outsourcing; Joint product development; Modularity; Global technology-intensive markets; Portfolio of controls
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Due to increasing globalization and technological discontinuities, firms strive to develop new product capabilities and flexibilities by engaging in outsourcing activities and adopting modular systems. However, these strategies contain risks of opportunistic expropriation of tacit knowledge and costs related to monitoring sourcing partners who are geographically and culturally distant. This study examines the antecedents of control mechanisms through which firms manage the risks and costs associated with outsourcing relationships in global technology-intensive markets. Modularity in design is hypothesized as a moderator of model relationships because it can serve as a substitute for formal or informal controls in a controls portfolio. (C) 2009 Published by Elsevier Inc.
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