It is becoming increasingly common to involve external technology providers in developing new technologies and new products. Two important phases involved in working with technology vendors are vendor selection and vendor management. Since for both steps theory development of key decision...

We use detailed case studies of 31 innovation outsourcing projects at Siemens to develop grounded theory on (1) selection criteria for external technology providers, and (2) operational project management success factors in the collaboration with providers. We compare five types of providers:...

This study compares the efficacy of some commonly observed vendor selection and contracting mechanisms with respect to two key challenges in service outsourcing: vendor selection and contract efficiency. We show that competitive bidding yields good selection but contract inefficiency (positive...