Insourcing at Apple
In my doctoral dissertation, I develop a theory of computer-assisted organizing that links the rise of computer systems to the shift from integrated organizational capabilities to decentralized capability ecosystems. Although I believe the predictions of the theory probably hold true in aggregate, Apple’s recent move to bring chip design in-house illustrates how firm-level strategic considerations influence the division of information processing tasks across ecosystem participants. Presumably Apple won’t in-source all chip design: they’ll focus on domains where they can develop capabilities that strongly complement the firm’s software and hardware design.