Chapter

Outsourcing and Insourcing Strategies for Innovators: Opportunities and Limits *

David J. Teece

in Managing Intellectual Capital

Published in print March 2002 | ISBN: 9780198295426
Published online November 2003 | e-ISBN: 9780191596964 | DOI: http://dx.doi.org/10.1093/0198295421.003.0007

Series: Clarendon Lectures in Management Studies

 Outsourcing and Insourcing Strategies for Innovators: Opportunities and Limits *

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Managing virtual corporations confronts a trade‐off between incentives and control, and an alliance can achieve some of the coordination of an integrated company, but the members of an alliance can be driven to enhance their own positions, and their interests may diverge over time. The challenge for managers is to choose the organizational form (virtual, alliance, or otherwise) that best matches the type of innovation (autonomous or systemic) they are pursuing.

Keywords: alliance; control; coordination; incentives; innovation; organizational forms; virtual corporations

Chapter.  4135 words.  Illustrated.

Subjects: Microeconomics

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