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Outsourcing new products development in conditions of technological uncertainty: partner selection criteria and project implementation mechanisms

Lookup NU author(s): Professor Raffaele Filieri



This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0).


In knowledge intensive industries, an increasing number of firms rely on external knowledge sources and draw on the technical expertise of other firms to develop new products. Despite the dramatic increase in outsourcing, strategic activities such as New Product Development (NPD), few systematic studies on this topic have been carried out. We aim to provide an in-depth understanding of the criteria used by companies to decide to whom and how to outsource NPD in conditions of high technological uncertainty, from supplier’s selection to project implementation. The findings emerging from 14 interviews with nine buyers and their supplier show that in addition to transaction cost economics and the resource based view of the firm, relational exchange theory, and co-creation theory help to explain outsourcing decision in NPD contexts. The balance of formal and informal mechanisms, namely trust and intellectual property rights emerge as the most important enablers of knowledge and information transfer in the implementation phase of outsourcing NPD.

Publication metadata

Author(s): Alguezaui S, Filieri R, McLeay F

Publication type: Conference Proceedings (inc. Abstract)

Publication status: Published

Conference Name: British Academy of Management Conference (BAM2016)

Year of Conference: 2016

Print publication date: 06/09/2016

Acceptance date: 23/08/2016

Date deposited: 18/10/2016

Publisher: British Academy of Management