Product development sourcing over technology life-cycle

Abstract

Product development sourcing is vital due to the significant impact on company and product success. Different technology life-cycle (TLC) stages also necessitate product development sourcing to focus accordingly. Understanding the dynamics of product development sourcing over TLC's can prove beneficial. This study analyses product development sourcing strategies through three strategy formulating theories of transaction cost theory, knowledge-based theory, and resource-based theory over TLC stages. Three sourcing strategies of outsourcing, strategic acquisitions, and strategic alliances are considered. The topic is approached both by analysing literature and applying inductive logic for analysing product development sourcing over three technology generations in the context of an important player in the high-tech infrastructure business. A framework is introduced where product development activities emphasis and sourcing strategies' focus is presented over TLC, indicating the priorities in different situations. Contribution is provided by analysing motivations behind product development sourcing decisions over three technology generations' life-cycles.