Make or buy of IT-enabled innovation

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Make or buy of IT-enabled innovation

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Title: Make or buy of IT-enabled innovation
The influence of technological regimes and strategic postures
Author: Mahnke, Volker; Overby, Mikkel Lucas; Özcan, Serden
Abstract: IT-enabled innovations are of increasing importance for competitive success in most sectors today. This paper offers a novel theoretical and empirically illustrated explanation of why IT-outsourcing strategies differ between innovative first-movers, fast followers and late entrants. In particular, an analysis of three companies in the financial sector - Charles Schwab, Fidelity Investment, and Merrill Lynch - reveals that governance choices influence a company’s ap-propriable learning curve advantage to slow down or speed up adoption and imitation of IT-enabled innovation. Moreover, we discuss the implications of governance choices in techno-logical environments characterised by either accumulation or disruption. Keywords: IT-enabled innovation, outsourcing, technological regime, strategic posture, first-mover advantages, financial services, online brokerage
URI: http://hdl.handle.net/10398/6488
Date: 2004-03-02

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