Capability-based governance patterns over the product life-cycle

B. Vermeulen, A. Pyka, J.A. Poutré, La, A.G. Kok, de

Research output: Book/ReportReportAcademic

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Abstract

We investigate patterns of vertical governance over the product life-cycle as function of the capability regime properties imitability and substitutability. We use a novel neo-Schumpeterian model to study emerging governance patterns. We find that, in the era of incremental change, firms prefer vertical specialization. In the era of ferment, no governance form dominates. Imitability and substitutability, in interplay, determine the governance form preferred. High imitability frustrates appropriation and thereby integration for synergistic advantages. However, firms need not vertically specialize: under low substitutability, incompatibilities reduce the advantages of specialization. When both substitutability and imitability are low, firms can appropriate the value of their inventions and there is no combinatorial advantage of specialization, so firms predominantly integrate. If substitutability is high and imitability is low, the combinatorial advantage of specialization balances with the synergistic advantage of integration.
Original languageEnglish
Place of PublicationHohenheim
PublisherFZiD
Number of pages45
Publication statusPublished - 2013

Publication series

NameFZID Discussion Paper
Volume71
ISSN (Print)1868-0720

Fingerprint

Product lifecycle
Governance
Substitutability
Governance form
Incremental
Invention
Vertical specialization
Joseph Schumpeter
Incompatibility
Appropriation

Cite this

Vermeulen, B., Pyka, A., Poutré, La, J. A., & Kok, de, A. G. (2013). Capability-based governance patterns over the product life-cycle. (FZID Discussion Paper; Vol. 71). Hohenheim: FZiD.
Vermeulen, B. ; Pyka, A. ; Poutré, La, J.A. ; Kok, de, A.G. / Capability-based governance patterns over the product life-cycle. Hohenheim : FZiD, 2013. 45 p. (FZID Discussion Paper).
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Vermeulen, B, Pyka, A, Poutré, La, JA & Kok, de, AG 2013, Capability-based governance patterns over the product life-cycle. FZID Discussion Paper, vol. 71, FZiD, Hohenheim.

Capability-based governance patterns over the product life-cycle. / Vermeulen, B.; Pyka, A.; Poutré, La, J.A.; Kok, de, A.G.

Hohenheim : FZiD, 2013. 45 p. (FZID Discussion Paper; Vol. 71).

Research output: Book/ReportReportAcademic

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Vermeulen B, Pyka A, Poutré, La JA, Kok, de AG. Capability-based governance patterns over the product life-cycle. Hohenheim: FZiD, 2013. 45 p. (FZID Discussion Paper).