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Managing technology and innovation across firm boundaries: A case study of third party logistics firms in Hong Kong
Emily Leung Suk Man
Candidate for Master of Philosophy in Social Science, Hong Kong University of Science & Technology, Kowloon, Hong Kong
Abstract
What are the factors that guide traditional Hong Kong logistics firms through similar transitional processes? The capabilities among traditional firms vary in nature, but their complementarity allows them to offer a full range of logistics services. We argue that the transition process is characterized by a build-up of new same-sector inter-firm relationships resulting in an upgrade of existing services and the acquisition of missing capabilities.
We argue that the effects of the transition process will result in reshaped firm boundaries. If reconfiguration of capabilities among different firms occurs, firm boundaries will blur, and there will be a reconfiguration in corporate control. We believe that IT innovations enable this reconfiguration. Using in-depth interviews conducted with ten logistics firms in Hong Kong, the objective of this paper is to find out what happened in the transitional process to make this rapid evolution possible.
Keywords
service innovation, firm boundary, logistics firm, enabling technology, inter-firm relationship, capability acquisition, corporate control
References
South China Morning Post (2002) Battlefront shifts in war on costs, Hong Kong: June 20.
Hennock M (2002) China: the World's factory floor, BBC News Online Business, cited 20 Jan 2003. Available from http://news.bbc.co.uk/1/hi/business/2415241.stm.
Business Wire (2002) Outsourcing of Logistics is a Globally Recognized as a Primary Business with Significant Value, According to New Study, San Francisco: September 30.
Wood DF, Johnson JC, Wardlow DL and Murphy PR (1999) Contemporary Logistics 7th edn, Upper Saddle River NJ: Prentice Hall; p.8.
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