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The Business of Systems Integration$
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Andrea Prencipe, Andrew Davies, and Michael Hobday

Print publication date: 2005

Print ISBN-13: 9780199263233

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199263233.001.0001

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Specialization and Systems Integration

Specialization and Systems Integration

Where Manufacture and Services Still Meet*

(p.78) 5 Specialization and Systems Integration
The Business of Systems Integration

Keith Pavitt

Oxford University Press

This chapter argues that the Systems Integration firms are progressively replacing the large, established manufacturing firm, described by Penrose and Chandler, as the major motor of technical change in advanced, high-wage countries. This shift reflects in part the unexpected difficulties faced by large industrial firms in exploiting new technological opportunities. It also reflects the following combined effects of advances in IT and globalization: the acceleration of offshore manufacturing, facilitated by improvements in monitoring and control in modular interfaces, and in the transmission of codified skills; modularity; and digitally-based systems.

Keywords:   outsourcing, IT-enabled innovation, coordination of innovation, technological change, information technology, communication technology

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