Make-buy decisions in the face of technological change: does industry clockspeed matter?

Perrons, Robert K. & Platts, Ken (2005) Make-buy decisions in the face of technological change: does industry clockspeed matter? International Journal of Management and Enterprise Development, 2(1), pp. 1-11.

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Some evidence 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 paper seeks to bridge the gap between these perspectives by suggesting that both strategies are valid, but that they are most successfully applied in different market environments. The ''make'' prescription may be more suited to either extremely fast or extremely slow rates of technological change, while a ''buy'' strategy might be more appropriate in market sectors where technologies evolve at a medium pace. This paper highlights the importance of industry clockspeed and supplier relationships in make-buy decisions for new technologies, and puts forward two new hypotheses that require empirical testing.

Impact and interest:

9 citations in Scopus
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ID Code: 46472
Item Type: Journal Article
Refereed: Yes
Keywords: industry clockspeed, innovation., outsourcing, make-or-buy decisions, SMEs, supplier relationships, technological change, technology transfer
DOI: 10.1504/IJMED.2005.006020
ISSN: 1468-4330
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Psychology & Counselling
Copyright Owner: InderScience Publishers
Copyright Statement: Copyright © 2004-2011 Inderscience Enterprises Limited.
Deposited On: 13 Oct 2011 06:35
Last Modified: 29 Feb 2012 14:36

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