Several streams of recent literature emphasize the advantages of involving external sources of innovation in the process of developing complex products (Powell et al., 1996; Helper et al., 2000; Sturgeon, 2002; Chesbrough, 2003). The question we tackle in the present article is 'What are the key micro...

Firms that develop complex products have a strong incentive to leverage the suppliers’ specialized knowledge. On the other hand, firms are often confronted with a trade-off between the benefits of leveraging external sources of innovation and the benefits of competence accumulation provided by...

Traditionally, routines have been perceived as a primary source of inertia, which slows down organizational change and hinders organizational adaptation. Advancing prior research on routine dynamics, this study examines how inertia in routines influences the process of organizational adaptation,...