Document Type

Article

Publication Date

12-1-2009

Abstract

Common sense would say, if you are going to outsource innovation, find the most competent supplier and acquire the most codified technology. This research hypothesizes a more counter-intuitive approach by empirically measuring how a firm's outsourcing strategy affects its Absorptive Capacity, which serves here as a proxy for firm sustainability. It is proposed that a complementary buyer-supplier relationship will have a significant positive effect on a firm's absorptive capacity, thereby enhancing its long-term effectiveness, as well as its short-term efficiency. On the other hand, the more competent the supplier relative to the buyer, the less knowledge the outsourcing buyer will assimilate to be able to transform and exploit in the future.

Keywords

strategic planning, strategic outsourcing, outsourcing innovation, absorptive capacity, firm sustainability

Rights

© The Author(s). Kelvin Smith Library provides access for non-commercial, personal, or research use only. All other use, including but not limited to commercial or scholarly reproductions, redistribution, publication or transmission, whether by electronic means or otherwise, without prior written permission is strictly prohibited.

Department/Center

Design & Innovation

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