This paper considers the trade-off between leveraging external sources of innovation by outsourcing design and engineering activities and the ability to develop internal product development competences. The trade-off arises because the division of labor within and across firms' boundaries has a...

Firms that develop complex products have a strong incentive to leverage the suppliers’ specialized knowledge. On the other hand, firms are often confronted with a trade-off between the benefits of leveraging external sources of innovation and the benefits of competence accumulation provided by...

The profound transition that the automotive industry is facing affects all the actors that operate in it, from carmakers to suppliers. The research explores the case of two plants of a multinational company that operates in the automotive supply chain. These two plants are specialized in the...