The paper analyses the organization of the new product development process at FIAT from a resource‐based perspective. The focus is on organizational resources for integrating dispersed specialist knowledge required in the development of complex products. The analysis shows how the application of a resource‐based perspective is able to uncover negative long‐term effects of outsourcing on the knowledge base (hollowing out), despite beneficial short‐term effects on cost.
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Becker et al. (2003) studied this question.
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