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The evolution of vertical boundaries in new high technology ventures
Arison Sch Business, Interdisciplinary Ctr, Herzliyya, Israel; Hebrew Univ Jerusalem, Sch Business Adm, Jerusalem, Israel; Univ Oxford, Blavatnik Sch Govt, Oxford, England.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies. (Entreprenörskap)
2018 (English)In: Strategic Entrepreneurship Journal, Vol. 12, no 3, p. 287-315Article in journal (Refereed) Published
Abstract [en]

We argue that interrelated processes of knowledge codification and uncertainty reduction lead to the contraction of vertical firm boundaries of new high technology ventures over time. Consistent with our arguments, we show that, over time, outsourcing of R&D is slower than outsourcing of manufacturing, while outsourcing of marketing and sales is the fastest. Further, we show heterogeneity in the pace of vertical boundary contraction, where new high technology ventures that engage in knowledge exploration and those whose founders have strong technological backgrounds exhibit slower vertical boundary contraction. Typically, the slowdown in the pace of outsourcing, once again, is the strongest for R&D and the weakest for marketing and sales.

Place, publisher, year, edition, pages
2018. Vol. 12, no 3, p. 287-315
Keywords [en]
founders, knowledge tacitness, new high technology ventures, outsourcing, uncertainty, vertical firm boundaries
National Category
Business Administration
Identifiers
URN: urn:nbn:se:uu:diva-360028DOI: 10.1002/sej.1292ISI: 000443232900001OAI: oai:DiVA.org:uu-360028DiVA, id: diva2:1246611
Available from: 2018-09-08 Created: 2018-09-08 Last updated: 2018-11-01Bibliographically approved

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Zander, Ivo

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