【公开学术报告】Performance and Survival Implications of Sourcing Choice Sequence across an Architectural Innovation Life Cycle

Guest Speaker:     Woo-Yong Park (Hong Kong Polytechnic University)

Time/Date:          14:00 pm Tue. 25th, August 2020 (Beijing Time)

Length:                1.5 hours

Meeting ID:          653 193 95203

Password:             507960

Click Link:            https://zoom.com.cn/j/65319395203

ABSTRACT

This study investigates follower firms’ make-buy sourcing choices and sequences in response to an architectural innovation by an innovator.  We argue that the dynamic trade-offs among knowledge acquisition, knowledge transformation, and transaction cost reduction underlie the performance impacts of make-buy sourcing choices and sequences across the architectural innovation life cycle.  Using the data gathered from the gear-shifting market of the U.S. bicycle industry, we empirically demonstrate that “buy” is a superior sourcing choice before key market-winner features (i.e., dominant design) have emerged.  After that, “make” becomes a superior choice.  We then demonstrate that the ‘buy-to-make’ sourcing sequence is associated with superior technological and financial performances in the post-dominant design phase of the architectural innovation period, as well as with greater firm survival during the market shakeout in the later period of modular standardization.  The theoretical and managerial implications of our findings are also discussed. 

Key words:  Architectural Innovation, Sourcing Choice Sequence, U.S. Bicycle Gear-shifting Market

BRIEF BIOSKETCH

Dr. Woo-Yong Park received PhD degree in Industrial and Operations Engineering from University of Michigan (Ann Arbor), Michigan, USA.  Prior to the current school, he worked at Florida International University (Miami, Florida, USA), SK Corporation (Seoul, Korea), and Chung-Ang University (Seoul, Korea).    

His initial research started focusing on innovation issues.  Then, a question is, if innovation itself is so critical, “when an innovation shock hits the market, why some firms are dominating and why some other firms are sluggish?”  To address the question, his research has evolved into management and strategy areas.  The basic thrust of his current scholarly work lies at the intersection of the technological innovation and management/strategy areas.