Manage the value and liability of offshoring innovation

Tung Min Hung, Farok Contractor and Yi-Ju Lo

International Business Review, 2022, vol. 31, issue 2

Abstract: The impact of offshoring innovation on firm innovativeness remains unclear. To bridge this gap, we draw upon the new eclectic paradigm and the strategy structure paradigm to examine offshoring innovation, a combination of geographical dispersion and functional interdependence of various innovation activities. We also explore the sole and joint effects of two managing mechanisms – a global offshoring strategy and captive operations – on the relationship between offshoring innovation and firm innovativeness. As offshoring innovation has positive impact on firm innovativeness, each mechanism helps firms appropriate the value of offshoring innovation. Despite that, the joint adoption of both mechanisms exerts a greater impact of offshoring innovation on firm innovativeness than does sole one.

Keywords: Offshoring innovation; Global liability; Local liability; Offshoring strategy; Captive operations (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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DOI: 10.1016/j.ibusrev.2021.101923

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