Liu, Yang (2019) Boundary spanning for economies of scope in innovation of diversified firms. (doi:10.5465/AMBPP.2019.11154abstract).
Abstract
One important advantage of diversified firms is economies of scope. Sharing components and materials (which I conceptualize as product design elements) across business units (BUs) in new product development (NPD) can enhance economies of scope through further reducing costs. Through a qualitative case study of a home appliance company, I investigated how the company continuously shared product design elements across BUs through intra-firm boundary spanning in NPD. I found that sharing product design elements across BUs requires a boundary spanning process in NPD composed of several distinct activities. This process is facilitated by a certain boundary spanning structure and the use of certain boundary objects. This study advances our understanding of economies of scope through focusing on sharing product design elements (instead of knowledge) in NPD and the role of intra-firm boundary spanning.
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