Outsourcing in the Face of Radical Innovation: Does Industry Clockspeed Matter?

Evidence from management and business strategy research is divided over whether or not a firm should outsource the components and processes underpinning a new and potentially radical innovation. This investigation introduces ideas and evidence from the areas of supplier relations and industry clockspeed, and attempts to reconcile conflicting conclusions from earlier research by using a survey to measure supply chain management practices from a broad range of manufacturers in the UK. The results show that an industry’s clockspeed has no significant bearing on the success or failure of any particular make-buy strategy for a radical innovation. The findings also indicate that maintaining strong ties with suppliers yields no significant long-term benefit for firms contending with radical new technologies.