Make or buy of IT-enabled innovation: The influence of technological regimes and strategic postures

Volker Mahnke; Mikkel Lucas Overby; Serden Özcan

Make or buy of IT-enabled innovation: The influence of technological regimes and strategic postures

Volker Mahnke, Mikkel Lucas Overby, Serden Özcan

Research output: Working paper › Research

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

Original language	English
Place of Publication	København
Number of pages	38
Publication status	Published - 2004

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6488Final published version, 858 KBLicence: CC BY-NC-ND

Cite this

Mahnke, V., Overby, M. L., & Özcan, S. (2004). Make or buy of IT-enabled innovation: The influence of technological regimes and strategic postures.

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AB - 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

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