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Managing Intellectual CapitalOrganizational, Strategic, and Policy Dimensions$
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David J. Teece

Print publication date: 2002

Print ISBN-13: 9780198295426

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198295421.001.0001

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Outsourcing and Insourcing Strategies for Innovators: Opportunities and Limits *

Outsourcing and Insourcing Strategies for Innovators: Opportunities and Limits *

Chapter:
(p.125) Chapter 7 Outsourcing and Insourcing Strategies for Innovators: Opportunities and Limits*
Source:
Managing Intellectual Capital
Author(s):

David J. Teece (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0198295421.003.0007

Managing virtual corporations confronts a trade‐off between incentives and control, and an alliance can achieve some of the coordination of an integrated company, but the members of an alliance can be driven to enhance their own positions, and their interests may diverge over time. The challenge for managers is to choose the organizational form (virtual, alliance, or otherwise) that best matches the type of innovation (autonomous or systemic) they are pursuing.

Keywords:   alliance, control, coordination, incentives, innovation, organizational forms, virtual corporations

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