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Make-buy decisions in the face of radical innovations.

dc.creatorPerrons, Robert Kirby
dc.date.accessioned2018-11-24T13:11:00Z
dc.date.available2011-04-05T09:08:01Z
dc.date.available2018-11-24T13:11:00Z
dc.date.issued2004-10-26
dc.identifierhttp://www.dspace.cam.ac.uk/handle/1810/236598
dc.identifierhttps://www.repository.cam.ac.uk/handle/1810/236598
dc.identifier.urihttp://repository.aust.edu.ng/xmlui/handle/123456789/2869
dc.description.abstractSome research in the area of make-buy decisions for new technologies suggests that it is a good idea for a company to pursue a fairly rigorous “make” policy in the early days of a potentially disruptive innovation. Other studies prescribe exactly the opposite, promoting instead a “buy” strategy. This lack of convergence points to the fact that the scheme of categorization used to analyze make-buy decisions in the face of radical innovations is not yet complete. Accordingly, this thesis builds upon prior work on make-buy decisions and disruptive technologies, and constructs two new hypotheses by introducing evidence from research in the areas of (1) supplier relationships and (2) industry clockspeed. Using a three-phase research design involving both case studies and a survey, this research shows that close relationships between customer firms and principal suppliers that are built on trust and personal relationships do not play an important long-term role in the development of radical innovations. Thus, while previous research in this area underlines the value of these relationships during the day-to-day operations of a business, this evidence draws into question whether they are helpful in the face of a radical innovation. The results also show that an industry’s clockspeed has no significant bearing on the success or failure of any particular make-buy strategy for a radical innovation. Because many of the prescriptive frameworks and strategic formulas put forward in the literature for make-buy decisions involving radical innovations are based on observations from fast clockspeed industries, this conclusion effectively broadens the potential applicability of prior research in this area.
dc.languageen
dc.publisherUniversity of Cambridge
dc.titleMake-buy decisions in the face of radical innovations.
dc.typeThesis


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