Make, Buy or Ally? Theoretical Perspectives on Knowledge Process Outsourcing Through Alliances

23 Pages Posted: 27 Oct 2010

See all articles by Susan M. Mudambi

Susan M. Mudambi

Fox School of Business, Temple University; Fox School of Business, Temple University

Stephen Tallman

University of Richmond - E. Claiborne Robins School of Business

Abstract

Outsourcing knowledge and innovation activities offer cost savings and superior performance, but can also put a firm's unique resources and capabilities at risk. Characterizations of outsourcing as a make-or-buy decision do not fit well with decisions on knowledge process outsourcing (KPO). KPO is a make-or-ally decision, as firms seek a governance structure that will both protect and leverage their strategic knowledge assets, with the final decision often coming down to a choice between different alliance forms. Our new conceptualization provides an integrated perspective on resource integration and transaction specificity in the knowledge governance decision. The model illustrates the dynamics and learning involved in knowledge outsourcing by identifying two distinct paths to KPO alliances.

Suggested Citation

Mudambi, Susan M. and Tallman, Stephen B., Make, Buy or Ally? Theoretical Perspectives on Knowledge Process Outsourcing Through Alliances. Journal of Management Studies, Vol. 47, Issue 8, pp. 1434-1456, December 2010, Available at SSRN: https://ssrn.com/abstract=1698370 or http://dx.doi.org/10.1111/j.1467-6486.2010.00944.x

Susan M. Mudambi (Contact Author)

Fox School of Business, Temple University ( email )

1801 Liacouras Walk
Alter 524
Philadelphia, PA 19122
United States
215-204-3561 (Phone)

Fox School of Business, Temple University ( email )

1801 Liacouras Walk
524 Alter Hall
Philadelphia, PA 19122
United States

Stephen B. Tallman

University of Richmond - E. Claiborne Robins School of Business ( email )

Richmond, VA 23173
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
3
Abstract Views
1,205
PlumX Metrics