Where Firms Change: Internal Development Versus External Capability Sourcing in the Global Telecommunications Industry

Topics:
Knowledge Management,
Mergers,
Venture Capital
Tags:
Business Operations,
Capability,
Duke University,
Management,
Purchasing & Procurement,
Sourcing,
Strategy,
Telecommunications
Source:
Duke University

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Overview: This paper studies firms' choices of internal versus external sources of new capabilities. This paper first compares transaction cost, knowledge-based, and institutional arguments, which all emphasize the attributes of capabilities, including contractual hazards, capability gaps, and legitimacy. It next contrasts these arguments with propositions that emphasize constraints on external availability as drivers of internal development. This paper then proposes that a firm's internal reconfiguration and external reconfiguration routines affect its capability sourcing decisions as interactions with the capability attributes and external constraints.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 109KB | Date: Sep 2004 | Pages: 38

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