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|Title: ||Technological and Organizational Designs for Realizing Economies of Substitution|
|Authors: ||Garud, Raghu|
|Issue Date: ||Dec-1997|
|Publisher: ||Stern School of Business, New York University|
|Series/Report no.: ||IS-97-32|
|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.|
|Appears in Collections:||IOMS: Information Systems Working Papers|
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