Managing technology and innovation across firm boundaries: A case study of third party logistics firms in Hong Kong

Summary

What are the factors that guide traditional Hong Kong logistics firms through similar transitional processes? The capabilities among traditional firms vary in nature, but their complementarily allows them tooffer a full range of logistics services. We argue that the transition process is characterized by a build-up of new same-sector inter-firm relationships resulting in an upgrade of existing services and the acquisition of missing capabilities. We argue that the effects of the transition process will result in reshaped firm boundaries. If reconfiguration of capabilities among different firms occurs, firm boundaries will blur, and there will be a reconfiguration in corporate control. IT innovations are thought to enable this reconfiguration. Using in-depth interviews conducted with ten logistics firms in Hong Kong, the objective of this research note is to find out what happened in the transitional process to make this rapid evolution possible.

Key Words:

• service innovation
• firm boundary
• logistics firm
• enabling technology
• inter-firm relationship
• capability acquisition
• corporate control