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Outsourcing Innovative Capabilities for IT-Enabled Services

Author

Listed:
  • Volker Mahnke
  • Serden Ozcan
  • Mikkel Lucas Overby

Abstract

IT-enabled innovations are critical for competitive success in a range of industries including financial brokerage. This paper addresses the crucial question: How do capability development strategies differ between first-movers and late-entrants in IT-enabled services. We develop a theory based on two explorative case studies—Charles Schwab and Merrill Lynch. A comparative analysis reveals that governance choices are influenced by a company's attempts to strategically position itself as a first- or late-mover in varying technological regimes.

Suggested Citation

  • Volker Mahnke & Serden Ozcan & Mikkel Lucas Overby, 2006. "Outsourcing Innovative Capabilities for IT-Enabled Services," Industry and Innovation, Taylor & Francis Journals, vol. 13(2), pages 189-207.
    • Handle: RePEc:taf:indinn:v:13:y:2006:i:2:p:189-207
    DOI: 10.1080/13662710600684522
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    References listed on IDEAS

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    1. Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
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    Cited by:

    1. Jae Wook Yoo & Richard Reed & Shung Jae Shin & David J. Lemak, 2009. "Strategic Choice and Performance in Late Movers: Influence of the Top Management Team's External Ties," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 308-335, March.
    2. Feliciano-Cestero, María M. & Ameen, Nisreen & Kotabe, Masaaki & Paul, Justin & Signoret, Mario, 2023. "Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization," Journal of Business Research, Elsevier, vol. 157(C).
    3. Hassanzadeh, Farhad & Modarres, Mohammad & Nemati, Hamid R. & Amoako-Gyampah, Kwasi, 2014. "A robust R&D project portfolio optimization model for pharmaceutical contract research organizations," International Journal of Production Economics, Elsevier, vol. 158(C), pages 18-27.

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