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We study the timing of new technology adoption in markets with input outsourcing, and thus with vertical relations. We find that technology adoption can take place earlier when firms engage in input outsourcing than when they produce the input in-house. Hence, the presence of vertical relations...
Persistent link: https://www.econbiz.de/10011346708
We investigate firms' outsourcing decisions when production requires a large number of inputs. The novelty of our approach is that it provides a testable framework to characterize the equilibrium fraction of outsourced inputs. We demonstrate that intensified competition in a Cournot market for...
Persistent link: https://www.econbiz.de/10014061087
This paper shows the strategic aspects of international outsourcing in an oligopolistic market, if outsourcing is attractive because of fixed cost savings. We show that outsourcing decisions are strategic substitutes. Furthermore, we demonstrate that due to decreasing individual output,...
Persistent link: https://www.econbiz.de/10010303908
This paper shows the strategic aspects of international outsourcing in a duopolistic market. Due to different costs of integrated production and outsourcing, the choice of a firm influences the strategy of the competitor via the output price. Therefore, the resulting market constellation depends...
Persistent link: https://www.econbiz.de/10010303910
This paper shows the strategic aspects of international outsourcing in a duopolistic market. Due to different costs of integrated production and outsourcing, the choice of a firm influences the strategy of the competitor via the output price. Therefore, the resulting market constellation depends...
Persistent link: https://www.econbiz.de/10008796592
This paper shows the strategic aspects of international outsourcing in an oligopolistic market, if outsourcing is attractive because of fixed cost savings. We show that outsourcing decisions are strategic substitutes. Furthermore, we demonstrate that due to decreasing individual output,...
Persistent link: https://www.econbiz.de/10008796598
We explore the incentives of a vertically integrated incumbent firm to license the production technology of its core input to an external firm, transforming the licensee into its input supplier. We find that the incumbent opts for licensing even when licensing also transforms the licensee into...
Persistent link: https://www.econbiz.de/10011597751
probability of introducing product and process innovation. Based on a large firm-level survey, we show that outsourcing processes … have a positive impact on firms’ innovation. In particular, the outsourcing of service activities contributes the most to … innovation, thus suggesting that firms successfully pursue core strengthening strategies. Our econometric estimates show that …
Persistent link: https://www.econbiz.de/10005087099
probability of introducing product and process innovation. Based on a large firm-level survey, we show that outsourcing processes … have a positive impact on firms’ innovation. In particular, the outsourcing of service activities contributes the most to … innovation, thus suggesting that firms successfully pursue core strengthening strategies. Our econometric estimates show that …
Persistent link: https://www.econbiz.de/10005345954
This paper focuses on contractual provisions in external sourcing of innovative services. Such agreements require protection of key knowledge assets, whilst simultaneously providing incentives for heuristic search to enable problem solving and knowledge transfer. We conceptualize two distinct...
Persistent link: https://www.econbiz.de/10013066960