Make or Buy Decisions for Strategic Problem Solving: a Knowledge-based Examination in Medical Device Manufacturing

Jeffrrey Macher (Georgetown University (McDonough))

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 the terms of performance, depending on technological complexity and product novelty. We make theoretical and empirical contributions to KBV research that examines organization and performance related to knowledge development and transfer. The medical device manufacturing industry serves as the empirical setting.


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