The Strength of IT-Based (Virtual) Interfirm Ties in the Development of Complex Product Systems

Part of the Annals of Information Systems book series (AOIS, volume 5)


This chapter examines the value of “virtual embeddedness” in the context of firms that develop complex product systems (CoPS). The development of CoPS usually involves many firms working together. Firms may choose to maintain arms-length relationships with their partners. But often they must coordinate new product development (NPD) through more embedded interactions because of the intricate nature of systems development in CoPS. Although embeddedness can be socially constructed, the rise of Internet and digital technologies have given way to the emergence of a new form of embeddedness – virtual embeddedness, which provides CoPS firms with unprecedented opportunities for learning and scope economies in the process of NPD. Based on a new typology of virtual embeddedness in organizational space, I posit that virtual embeddedness is a good complementary vehicle to modularity in the management of NPD between CoPS firms. Accordingly, I draw some implications for future research.


Product Development Focal Firm Social Embeddedness Network Embeddedness Virtual Connection 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.School of Management, Gatton College of Business & EconomicsUniversity of KentuckyLexingtonUSA

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