Strategic Problem Solving: A Knowledge-Based Examination in Medical Device Manufacturing

Abstract

This paper examines how the knowledge-based view (KBV) can be applied to firm boundary decisions and the performance implications of those decisions. At the center of the paper is a theoretical and empirical examination of how firms efficiently organize manufacturing in a regulated industry. We find that distinct organizational approaches are advantaged in terms of regulatory performance, depending on the complexity (i.e., technological sophistication) and structure (i.e., novelty) of particular problems, as well as the distribution of problems within the organization. We make theoretical and empirical contributions to KBV research that examines organization and performance related to problem solving, knowledge development and knowledge transfer. The medical device manufacturing industry serves as the empirical setting.