In this article, we develop a theoretical understanding of patenting and standardization strategies and analyze their practical implementation for in‐ and outbound knowledge transfer in new product development processes. Our case study consists of two original equipment manufacturers (OEMs) and one supplier active in the global automotive industry. We consult extensive external and company documents as well as interviews with 13 company experts. Although our theoretical considerations suggest that standardization, patenting and their interrelation can be of considerable importance for knowledge transfer in new product development and innovation processes, this is hardly implemented in practice. The resources devoted to patenting by far outweigh those for the standardization process. Neither of the OEMs have their standardization strategy linked to their new product development processes; only patenting strategies are considered in the new product development processes. The surveyed supplier, however, uses standardization strategically. We further consider how a standardization strategy should relate to the patenting strategy in terms of generating the most beneficial outcome for knowledge transfer. We recommend an integrated standardization strategy that is analogously to the patenting strategy and tied to the new product development process.
This chapter provides a thorough introduction to the development of company standards for strategic purposes with specific focus on the use of company standards in the manufacturing sector. It gives an overview of the different types of company standards that are implemented by a company and its supply chain partners. By highlighting similarities with and distinctions from formal standards, this chapter carves out different economic effects of company standards. This allows the authors to develop different strategies a company can follow with the development of company standards. These strategies, however, are not confined for internal aspects. They also include the impacts of company standards on others, such as suppliers. This book chapter aims to aid companies and their supply chain partners to optimally use company standards for economic optimization.
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