The evolution of vertical boundaries in new high technology ventures

Research Summary We argue that interrelated processes of knowledge codification and uncertainty reduction lead to the contraction of vertical firm boundaries of new high technology ventures over time. Consistent with our arguments, we show that, over time, outsourcing of R&D is slower than outsourcing of manufacturing, while outsourcing of marketing and sales is the fastest. Further, we show heterogeneity in the pace of vertical boundary...