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Vertical Competition and Outsourcing in a Supply Chain

Received: 23 November 2015     Accepted: 4 December 2015     Published: 30 December 2015
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Abstract

This paper explores the importance of supply chain asymme tries by investigating the difference between firms in terms of key parameters. For the examination of inter-firm competition through product development, the context of simultaneous entry and sequential entry are treated separately. This allows a deeper understanding of the implications of information asymmetry and commit ment which have been regarded as important determinants in the context of game-theoretic studies. The study of innovation based competition has often considered aspects related to patent races and incremental product-process innovation to achieve distinctive advantage. However, recently innovation-based competition has become an aspect of buyer-supplier relationships. There are many instances in manufacturing where one finds situations of lock-ins created by innovative suppliers.

Published in International Journal of Business and Economics Research (Volume 4, Issue 6)
DOI 10.11648/j.ijber.20150406.17
Page(s) 315-322
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Supply Chain, Outsourcing, Competition, Investment Strategy, Stochastic Games

References
[1] Clark, K. B. and Fujimoto, T. (1991), Product Development Performance, Boston, Ma.: Harvard Business School Press.
[2] Cox, Andrew; Ireland, P. Lonsdale, C. Sanderson, J.; Watson,G. (2002), Supply Chains, Markets and Power: Mapping Buyer and Supplier Power Regimes, London: Routledge.
[3] Dasgupta, P., Stiglitz, J. (1981), “Resource Depletion under Technological Uncer¬taintv”, Econometrica 49, 85-104.
[4] Dockner, E., Jorgensen, S., Van Long, N., Sorger, G (2000), Differential Games in Economics and Management Science, Cambridge: Cambridge Univ. Press.
[5] The Economist (2007), “Revving Up”, A Special Report on Innovation, Oct.27, 6-10.
[6] Fine, C, H, (1999), Clockspeed: Winning Industry Control in the Age of Temporary Advantage, New York: Perseus.
[7] Gottinger, H. W. (2006), Innovation, Technology and Hypercompetition, London: Routledge.
[8] Gottinger, H. W. (2015), “Supply Chain Coopetition”, International Journal of Business and Economics Research 4(2), 67-71.
[9] Gottinger, H. W. (2016), Networks, Competition, Innovation and Industrial Growth, NovaScience: New York.
[10] Harris, C., and Vickers, J.(1995),”Innovation and Natural Resources: A Dynamic Game with Uncertainty”, The Rand Journal of Economics 26(3), 418-430.
[11] Porter, Michael E. (1979), “How Competitive Forces shape Strategy”, Chapter 1 in On Competition, Boston: Harvard Business School Press, 21-38.
[12] Schelling, T. (1980), Strategy and Conflict, Cambridge, Ma.: Harvard Univ. Press.
[13] Sutton, J. (2001), Technology and Market Structure, MIT Press: Cambridge, Ma.
[14] Tang, C. S., Teo, C.-P. and K. K. Wei, eds. (2008), Supply Chain Analysis, Springer: New York.
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  • APA Style

    Hans W. Gottinger. (2015). Vertical Competition and Outsourcing in a Supply Chain. International Journal of Business and Economics Research, 4(6), 315-322. https://doi.org/10.11648/j.ijber.20150406.17

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    ACS Style

    Hans W. Gottinger. Vertical Competition and Outsourcing in a Supply Chain. Int. J. Bus. Econ. Res. 2015, 4(6), 315-322. doi: 10.11648/j.ijber.20150406.17

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    AMA Style

    Hans W. Gottinger. Vertical Competition and Outsourcing in a Supply Chain. Int J Bus Econ Res. 2015;4(6):315-322. doi: 10.11648/j.ijber.20150406.17

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  • @article{10.11648/j.ijber.20150406.17,
      author = {Hans W. Gottinger},
      title = {Vertical Competition and Outsourcing in a Supply Chain},
      journal = {International Journal of Business and Economics Research},
      volume = {4},
      number = {6},
      pages = {315-322},
      doi = {10.11648/j.ijber.20150406.17},
      url = {https://doi.org/10.11648/j.ijber.20150406.17},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20150406.17},
      abstract = {This paper explores the importance of supply chain asymme tries by investigating the difference between firms in terms of key parameters. For the examination of inter-firm competition through product development, the context of simultaneous entry and sequential entry are treated separately. This allows a deeper understanding of the implications of information asymmetry and commit ment which have been regarded as important determinants in the context of game-theoretic studies. The study of innovation based competition has often considered aspects related to patent races and incremental product-process innovation to achieve distinctive advantage. However, recently innovation-based competition has become an aspect of buyer-supplier relationships. There are many instances in manufacturing where one finds situations of lock-ins created by innovative suppliers.},
     year = {2015}
    }
    

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    AB  - This paper explores the importance of supply chain asymme tries by investigating the difference between firms in terms of key parameters. For the examination of inter-firm competition through product development, the context of simultaneous entry and sequential entry are treated separately. This allows a deeper understanding of the implications of information asymmetry and commit ment which have been regarded as important determinants in the context of game-theoretic studies. The study of innovation based competition has often considered aspects related to patent races and incremental product-process innovation to achieve distinctive advantage. However, recently innovation-based competition has become an aspect of buyer-supplier relationships. There are many instances in manufacturing where one finds situations of lock-ins created by innovative suppliers.
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Author Information
  • Strategy, Technology, Economics, STRATEC Consulting, Munich, Germany

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