Learning by supplying and competition threat

YF Chen, A Naghavi, SK Peng - Review of World Economics, 2021 - Springer
This study proposes a model of learning by supplying in an international outsourcing
framework, where the supplier of a relationship-specific input can reverse engineer and
become a competitor to its partner in the final goods market. Transmitting knowledge to a
more capable supplier therefore creates competitive threat despite the benefits it brings
within an outsourcing relationship. In particular, in markets with less differentiated products
and for standard inputs that require less knowledge to be shared, choosing an intermediate …

Learning by Supplying and Competition Threat

C Yi-Fan, A Naghavi, SK Peng - 2019 - papers.ssrn.com
This study proposes a model of learning by supplying in an international outsourcing
framework, where the supplier of a relationship-specific input can reverse engineer and
become a competitor to its partner in the final goods market. Transmitting knowledge to a
more capable supplier therefore creates competitive threat despite the benefits it brings
within an outsourcing relationship. In particular, in markets with less differentiated products
and for standard inputs that require less knowledge to be shared, choosing an intermediate …
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