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Traditionally, research has considered the question of where a firm should draw its boundaries on the basis of economic efficiency. However, a firm’s boundary choices may be a source of competitive advantage, not only because of the potential for the right choices concerning whether an activity is undertaken internally or through the market to lead to cost advantages, but also on the basis of the learning that is possible and the subsequent building of firm capabilities. This proposed research project would consider how firms use less commonly studied boundary choice options to purposefully build capabilities over time and the success of these approaches. The specific boundary choices to be considered are ‘dual modes’ and ‘intermediate modes’. Dual modes refers to situations where firms both produce the product or service internally within the firm and simultaneously buy this same product or service from the external market. Intermediate modes cover relationships with external parties that are not arm’s length in nature and may thus take the form of strategic alliances, joint ventures or other collaborative arrangements. The central question is thus whether firms purposefully use these boundary choices as a way of building organisational capabilities, are they successful and how are such choices implemented within organisations?
This research will draw upon the capabilities and knowledge literature, along with some coverage of transaction cost economics to explain firm boundaries. The research design could be either qualitative or quantitative in nature depending upon the exact focus undertaken and could be applied to a range of organisations in terms of size as well as whether they are private and/or public sector. The results will further our theoretical understanding of how forms build their capabilities and provide firm’s with a concrete strategies for building their own foundations for competitive advantage.
Enquiries regarding this studentship should be made to Professor Peter Galvin (peter.galvin@northumbria.ac.uk) or Danielle Grenade on 0191 2274941(danielle.grenade@northumbria.ac.uk)
Applicants should hold a first or upper second class honours degree (in a relevant subject) from a British higher education institution, or equivalent. Students who are not UK/EU residents are eligible to apply, provided they hold the relevant academic qualifications, together with an IELTS score of at least 7.0.
You should apply using the University’s Research Application Form, available via the link on this page. Applications should be submitted to:
Danielle Grenade (Assistant Administrator)
Academic Support Office
Newcastle Business School
Northumbria University
Newcastle-upon-Tyne
NE1 8ST
Email: nb.nbs-research-admin@northumbria.ac.uk
Funding Notes:
The studentship includes a full stipend, paid for three years at RCUK rates (figure for 2012/13 is 13,590 pa). The studentship is offered on the basis that additional funding is secured to cover the programme fees for 3 years, usually from an external organisation.
References:
Galvin, P. and Tywoniak, S. 2012. ‘Rebuilding Organisational Capabilities through Reconceptualising and Altering the Activity and Knowledge Boundaries of the Firm’, paper presented at Workshop on Information and Organizational Architecture, March 9-10, 2012.
Galvin, P., Tywoniak, S. and Sutherland, J. 2008. ‘Chapter 29 - Knowledge and the Boundaries of the Firm: Implications for the Construction Industry’, in K. Brown, K. Hampstead and J. Pillay, Clients Driving Innovation, CRC Construction Innovation/Icon.Net Pty Ltd, Brisbane, pp.183-190.
Galbreath, J. and Galvin, P. 2008. ‘Firm Factors, Industry Structure and Performance Variation: New Empirical Evidence to a Classical Debate’, Journal of Business Research, 61(2): 109-117.