A product and process model of the technlogy-sourcing decision

The technology-sourcing decision traditionally has examined the choice either to innovate internally or to acquire technology from outside sources. The increasing complexity of this decision requires a move beyond the simple "make-versus-buy" dichotomy. A study seeks to test factors that i...

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Bibliographic Details
Published inThe Journal of product innovation management Vol. 20; no. 6; p. 485
Main Authors Swan, K Scott, Allred, Brent B
Format Journal Article
LanguageEnglish
Published Hoboken Blackwell Publishing Ltd 01.11.2003
Subjects
Information technology
Organizational behavior
Product development
R&D
Regression analysis
Research & development
Sourcing
Studies
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Summary:The technology-sourcing decision traditionally has examined the choice either to innovate internally or to acquire technology from outside sources. The increasing complexity of this decision requires a move beyond the simple "make-versus-buy" dichotomy. A study seeks to test factors that influence the technology decision of subsidiaries for product and process technology across the continuum of options from internal development to outsourcing. Regression models are used to analyze data from 187 subsidiaries that suggest product and process technology development decisions sometimes are associated with similar factors and at other times they diverge. In particular, it is found that external product and process technology acquisition decisions are associated negatively with differentiation goals and associated positively with product dynamism. While external product acquisition is associated negatively with a low cost goal and positively with increasing distance between primary marketing and R&D operations, external process technology acquisition is associated positively with high competitive intensity.
ISSN:0737-6782
1540-5885