White Papers

Balancing Vertical Integration and Strategic Outsourcing: Effects on Product Portfolio, Product Success, and Firm Performance

Overview Most prior research has focused on vertical integration or strategic outsourcing in isolation to examine their effects on important performance outcomes. Baseline proposition is that balancing vertical integration and strategic outsourcing in the pursuit of taper integration enriches a firm's product portfolio and product success, and in turn contributes to competitive advantage and thus to overall firm performance. The set of hypothesis is derived and test them on a unique and fine-grained panel of longitudinal data documenting over 3,500 product introductions in the global microcomputer industry. The results provide strong support for the notion that carefully balancing vertical integration and strategic outsourcing when organizing for innovation helps firms to achieve superior performance.

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Publisher: John Wiley & Sons
File Format: PDF
Date Published: Feb 5, 2009
Format: White Papers
Topics: Outsourcing

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