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• W20852061 abstract "Designing a firm’s boundaries can lead to substantial strategic regeneration. But the question is, how? Moving beyondtransaction-level analysis, we consider how the design of the firm’s overall boundaries (rather than individual make-vs-buychoices) yield strategic advantages in addition to organizational benefits. We do so through in-depth analysis of a Europeantextile manufacturer that disaggregated its vertical structure without changing its overall scope. We discuss how the changein value proposition from integrated final good provider, to outsourcee delivering a series of intermediate goods and services,yielded real benefit in a saturated market. We highlight the major strategic benefits of this vertical disaggregation, andconsider how it changed both strategic prospects and industry dynamics. We show that this new structure allowed the firmto transform its monolithic structure into a vertically agile layout, enabling it to reconfigure the scope of its offerings tocustomers and, ultimately, to use reconfigurability as a strategic tool to fend off commoditization and segregate markets tosoften the effects of competition. We identify the critical role of IT as a factor enabling the new flexible structure. We showthat, in contrast to our expectations and the literature, it is architectural technologies such as ERP systems, rather than thetechnologies linking firms (such as EDI systems), that enable reconfigurable modular structures. We examine the conditionsunder which such flexible vertical structures may be effective, identifying high maturity and low appropriability in oursetting. We conclude with implications for theory and practice." @default.
• W20852061 created "2016-06-24" @default.
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• W20852061 date "2007-01-01" @default.
• W20852061 modified "2023-09-27" @default.
• W20852061 title "Fending Off Commoditization and Softening Competition Through Strategic Boundary Design" @default.
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