Balancing vertical integration and strategic outsourcing: effects on product portfolio, product success, and firm performance

2006 ◽  
Vol 27 (11) ◽  
pp. 1033-1056 ◽  
Author(s):  
Frank T. Rothaermel ◽  
Michael A. Hitt ◽  
Lloyd A. Jobe
2015 ◽  
Vol 794 ◽  
pp. 540-546 ◽  
Author(s):  
Stefan Rudolf ◽  
Casimir Ortlieb ◽  
Christian Tönnes ◽  
Günther Schuh

New and innovative products are drivers for successful and sustainable growth of companies. Only a continuous stream of innovations can defend established market segments and create new markets for the company. Especially for European companies, innovations offer the opportunity for differentiation against competitors and therewith help to consist the present cost pressure mainly coming from Asian countries. Thereby, innovation inherent risks regarding limited product success, longer development times and quality lacks threaten the success of the innovation process. With this paper, a new approach is introduced, which aims at the reduction of the risks in the innovation processes. This is realized by shifting the focus from a customer requirement driven innovation screening to a product portfolio based innovation approach. The idea is to identify innovation opportunities within existing portfolios to maximize the use of existing company capabilities.


2021 ◽  
Vol 6 (1) ◽  
pp. 353-360
Author(s):  
Sikandar Shah ◽  
Dr. Wisal Ahmad ◽  
Dr. Muhammad Faizan Malik ◽  
Shah Raza Khan

This studyexamines that how companies take decision of outsourcing and vertical integration a value-chain activity currently the most complex problem faced by most the organization around the globe and also find the relationship and highlight the role of every activity related to outsourcing and vertical integration. In result of survey and interviews of different small, medium and corporate level companies in KPK, procurement managers and operations managers mostly in view of that outsourcing is thebest way to work in the market, because of the cost reduction, minimumturnaround time and especially in the uncertain market of KPK.


Author(s):  
Jaloni Pansiri

This study investigates the growth of Wilderness Holdings Limited from its inception in 1983 to its entry into international markets. Using document analysis, the study identifies strategic orientation, and new market entry as two major ‘tipping points’ critical to WHL growth. This study found that WHL used vertical integration, acquisitions, downscoping, strategic alliances and partnerships to propel new market entry into eight countries in Africa. Its growth over the years was complex and possibly unique to itself specifically in respect to how downscoping and acquisition can be used together to propel growth. From a loss of BWP4, 967,000 in 2009, WHL’s profits reached BWP62, 751,000 in 2018. While WHL’s strategy may not be copied, it is essential for firms to blend different strategies in a manner that would lead to growth. However, the limitation of the WHL’s strategy is that it ultimately leads to over-diversification, unless downscoping is equally intensified.


2015 ◽  
Vol 65 (2) ◽  
pp. 211-229
Author(s):  
Szabolcs Szilárd Sebrek ◽  
Betsabé Pérez Garrido

This paper seeks to illuminate empirically a class of drivers of firm performance hitherto neglected in the economic literature. To accomplish this objective, we distinguished three elements: sales volume, participation in technology alliancing, and successful patent issuing. Our findings suggest that competitive pressure posed by larger rivals in an industry affects sales performance negatively, but the possession of absorptive capacity can counter this deleterious effect. Findings regarding the effects caused by a product portfolio with high technological content are mixed. Depending on the performance measure applied, the results show evidence of adverse outcomes for sales, U-shaped effects for participation in technology alliancing and inverted U-shaped results for patenting. We obtained our raw data from the 2006 and 2008 PITEC database, which is the Spanish equivalent of the EU Community Innovation Survey. Our sample embraces more than 3000 firms.


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