The decision to make or buy a critical technology: semiconductors at Ericsson, 1980-2010

Abstract

This article considers the decisions to outsource and re-integrate the development of critical and innovative technologies. It documents a historical sequence of choices made by strategists within a high-tech company, Ericsson. The evidence discussed indicates that a broad range of different factors were taken into consideration and that the influential people made a point of running different kinds approaches to outsourcing in parallel. Re-integration occurred when the structures put in place by collaborating firms did not sustain innovation.

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