Make, Buy or Ally? Theoretical Perspectives on Knowledge Process Outsourcing through Alliances

Outsourcing knowledge and innovation activities offer cost savings and superior performance, but can also put a firm's unique resources and capabilities at risk. Characterizations of outsourcing as a make‐or‐buy decision do not fit well with decisions on knowledge process outsourcing (KPO). KPO is a make‐or‐ally decision, as firms seek a governance structure that will both protect and leverage their strategic knowledge assets, with the final...