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“The traditional view of supply chain management is to leverage the supply chain to achieve the lowest initial purchase prices while assuring supply. Typical characteristics include: multiple partners; partner evaluation based on purchase price; cost based information bases; arms-length negotiations; formal short term contracts; and centralizised purchasing.” (Spekman et al., 1998)
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“The traditional view of supply chain management is to leverage the supply chain to achieve the lowest initial purchase prices while assuring supply. Typical characteristics include: multiple partners; partner evaluation based on purchase price; cost based information bases; arms-length negotiations; formal short term contracts; and centralizised purchasing.” (Spekman et al., 1998)
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A firm produces an artefact. The artefact is the reflection of the technological knowledge it possesses. So, we say that the firm has the technological knowledge for production of body panels for automobiles. In a deconstructed form this knowledge includes “… knowledge of techniques of die design, die modelling, die testing and finishing, for example. Additionally, knowledge can take the form of the skill of die designers in anticipating processing problems, customised software that allows for rapid and effective testing, patterns of communication and informal interaction between die designers and manufacturing engineers that allow for early identification of potential problems, an attitude of co-operation that facilitates coordinated action between die designers and the tool makers that will build the dies. These elements (and many others) define an organizational capability for die design and development.” (Iansiti and Clark, 1994) This knowledge is embodied in various types of physical and human assets and they are made to function in a defined fashion through an appropriate organisational arrangement
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A firm produces an artefact. The artefact is the reflection of the technological knowledge it possesses. So, we say that the firm has the technological knowledge for production of body panels for automobiles. In a deconstructed form this knowledge includes “… knowledge of techniques of die design, die modelling, die testing and finishing, for example. Additionally, knowledge can take the form of the skill of die designers in anticipating processing problems, customised software that allows for rapid and effective testing, patterns of communication and informal interaction between die designers and manufacturing engineers that allow for early identification of potential problems, an attitude of co-operation that facilitates coordinated action between die designers and the tool makers that will build the dies. These elements (and many others) define an organizational capability for die design and development.” (Iansiti and Clark, 1994) This knowledge is embodied in various types of physical and human assets and they are made to function in a defined fashion through an appropriate organisational arrangement.
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