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Organizational capabilities and technology acquisition: why firms know less than they buy

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  • Stephen Flowers

Abstract

This article examines some of the main challenges faced by firms as they seek to acquire the high-technology capital goods, systems and services that form the core of their operational infrastructure. Although the acquisition of the parts or components required to build manufactured products has been widely explored in the innovation literature, the acquisition of the technological infrastructure required by firms to undertake such activities is poorly understood. The process of infrastructure acquisition is a key part of the firm's innovation process, yet many firms lack the in-house capabilities required to effectively undertake this activity as it is an infrequent and highly complex task: firms know less than they buy. The article introduces a buyer typology that relates the acquisition of high-technology capital goods and services to the purpose and frequency with which they are acquired and examines the challenges faced by firms in the buying process. The part played by external specialist suppliers and consultants in the acquisition process is also explored, and the wider impact on the firm's absorptive capacity and innovation processes are considered. Copyright 2007 , Oxford University Press.

Suggested Citation

  • Stephen Flowers, 2007. "Organizational capabilities and technology acquisition: why firms know less than they buy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(3), pages 317-346, June.
  • Handle: RePEc:oup:indcch:v:16:y:2007:i:3:p:317-346
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    File URL: http://hdl.handle.net/10.1093/icc/dtm011
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    Cited by:

    1. Ruth, Derek & Iyer, Dinesh N. & Sharp, Barton M., 2013. "Motivation and ability in the decision to acquire," Journal of Business Research, Elsevier, vol. 66(11), pages 2287-2293.
    2. Owen, John R. & Kemp, Deanna, 2017. "Social management capability, human migration and the global mining industry," Resources Policy, Elsevier, vol. 53(C), pages 259-266.
    3. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2012. "Shifts in Innovation Power to Brazil and India: Insights from the Auto and Software Industries," MPRA Paper 49591, University Library of Munich, Germany.
    4. Rafael Pardo & Ruth Rama, 2013. "Is the Pro-Network Bias Justified?," SAGE Open, , vol. 3(3), pages 21582440134, July.
    5. Fernandes, Kiran Jude & Milewski, Simon & Chaudhuri, Atanu & Xiong, Yu, 2022. "Contextualising the role of external partnerships to innovate the core and enabling processes of an organisation: A resource and knowledge-based view," Journal of Business Research, Elsevier, vol. 144(C), pages 146-162.
    6. Julian Pineres Ramirez, 2015. "A learning-capacity framework: knowledge reconfiguration and knowledge orientation," Working Papers 4, Faculty of Economics and Management, Pontificia Universidad Javeriana Cali.
    7. Prior, Daniel D. & Keränen, Joona & Koskela, Sami, 2018. "Sensemaking, sensegiving and absorptive capacity in complex procurements," Journal of Business Research, Elsevier, vol. 88(C), pages 79-90.
    8. Hervas-Oliver, Jose-Luis & Sempere-Ripoll, Francisca & Boronat-Moll, Carles, 2012. "Process innovation objectives and management complementarities: patterns, drivers, co-adoption and performance effects," MERIT Working Papers 2012-051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Mirimoghadam, Mojdeh & Ghazinoory, Sepehr, 2017. "An institutional analysis of technological learning in Iran's oil and gas industry: Case study of south Pars gas field development," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 262-274.
    10. Lema, Rasmus, 2010. "Adoption of Open Business Models in the West and Innovation in India's Software Industry," MPRA Paper 49589, University Library of Munich, Germany.
    11. Mata, José & Woerter, Martin, 2013. "Risky innovation: The impact of internal and external R&D strategies upon the distribution of returns," Research Policy, Elsevier, vol. 42(2), pages 495-501.
    12. Gil, Nuno & Miozzo, Marcela & Massini, Silvia, 2012. "The innovation potential of new infrastructure development: An empirical study of Heathrow airport's T5 project," Research Policy, Elsevier, vol. 41(2), pages 452-466.
    13. S A Adebisi & Olufemi A Ogunkoya, 2014. "Dynamic Capabilities, Network Resources and Organizational Performance of Banks in the Nigerian Business Environment," Economics and Management Research Projects: An International Journal, Open Access International Journals, vol. 4(1), pages 1-9, December.

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