The Journal of Science Policy and Research Management
Online ISSN : 2432-7123
Print ISSN : 0914-7020
Strategic Management of Outsourcing in Product Development
Akira TAKEISHI
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JOURNAL FREE ACCESS

1999 Volume 14 Issue 2 Pages 108-114

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Abstract
Outsourcing in product development has gained importance as technological innovation accelerates with growing risk and cost of investment for development. Outsourcing does reduce development cost and risk for a company, allowing focusing resources in more appropriate activities; however, a question remains whether a third party is capable of bringing satisfactory results in the endeavor full with unpredictability. One hand the same partner may be shared with a competitor with similar expectations. Success in outsourcing as a means to acquire a leading edge in competition would depend on various factors such as delimitation or transaction management with competitors. It may proceed at various levels including individual contracts, a set of contracts or an inter-company network, or even as an internal organization. The present work presents analyses of cooperation of automotive manufacturers and suppliers, and shows the importance of management of distribution of activities and internal organization as well as delimitation and relationships with the partner, and the relationships of the partner with competitors.
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1999 Japan Society for Research Policy and Innovation Management
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