A Study on Product Development Based on Interfirm Labor Division of Multiple-Platforms and Relevant Issues

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The study explores product development and its issues under open inter-firm labor division. Drawing on the cases of mobile phones and car-electronics, the study shows that firms are required to accumulate system knowledge to integrate external multiple-platforms into products even though these multiple-platforms provided by specialized firms encourage product development implementation based on standardized technology specifications. The study also elucidates that firms each with different knowledge amount levels collectively shape the inter-firm labor division of technology exploration and exploitation for product development, and thereby finds multiple archetypes of firms' positioning strategies by the combination of firms' knowledge amount levels and exploration/exploitation activities.