What the hare can teach the tortoise about make‐buy strategies for radical innovations

Abstract

Purpose of this paper The purpose of this investigation is to help establish: whether or not strong relationships between suppliers and customers improve performance; and if prescriptive frameworks on outsourcing radical innovations are dependent on industry clockspeed. Design/methodology/approach A survey of UK‐based manufacturers, followed by a statistical analysis. Findings Long‐term supplier links seem not to play a role in the development of radical innovations. Moreover, industry clockspeed has no significant bearing on the success or failure of any outsourcing strategy for radically new technologies. Research limitations/implications Literature about outsourcing in the face of radical innovation can be more confidently applied to industries of all clockspeeds. Practical implications Prescriptions for fast clockspeed industries should be applied more broadly: all industries should maintain a high degree of vertical integration in the early days of a radical innovation. Originality/value Prior papers had explored whether or not a company should outsource radical innovations, but none had determined if this is equally true for slow industries and fast ones. Therein lies the original contribution of this paper.

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