Technological and organizational designs for realizing economies of substitution Article

Garud, R, Kumaraswamy, A. (1995). Technological and organizational designs for realizing economies of substitution . STRATEGIC MANAGEMENT JOURNAL, 16(1 S), 93-109. 10.1002/smj.4250160919

cited authors

  • Garud, R; Kumaraswamy, A

authors

abstract

  • Today's industrial landscape is characterized by rapid change and systemic technologies. Rapid change results in ever shorter product life cycles that demand continual innovation from firms. The systemic nature of technologies makes it difficult, if not impossible, for any one firm to manufacture all components of a technological system. We propose that these challenges be met by designing technological systems that have the potential to yield economies of substitution. Additionally, we propose that these economies be realized by adopting the network mode of governance. We examine the network mode at three levels—intrafirm, interfirm, and institutional—to illuminate the inherent tension between cooperation and competition at each level, and to explore the implications of this tension for industrial dynamics. Copyright © 1995 John Wiley & Sons, Ltd.

publication date

  • January 1, 1995

published in

Digital Object Identifier (DOI)

start page

  • 93

end page

  • 109

volume

  • 16

issue

  • 1 S