 Going far to go further: Offshoring, exploration, and R&D performanceCurba Morris Lampert and Minyoung Kim Journal of Business Research, 2019, vol. 103, issue C, 376-386 Abstract: Despite its many benefits, firms may not conduct exploration because of inhibitive costs. We maintain that offshoring provides a cost-leveraging strategy that can help firms overcome this constraint, and enhance their R&D performance with increased exploration. Empirical evidence supports our thesis: first, firms that offshore more of their R&D activities to developing countries engage in greater exploration; second, the degree to which firms benefit from offshoring is contingent on their R&D intensity, such that firms with lower levels of R&D intensity enjoy greater benefits from offshoring for exploration than those with higher levels; and third, greater exploration confers an R&D performance advantage to firms where greater exploration increases firms' successes in preclinical trials. Our study offers two implications: (1) what drives firms' exploration is not just what they can do (competencies), but also what they can afford to do (costs); and (2) offshoring enhances exploration, which, in turn, increases R&D performance. Keywords: Offshoring; Exploration; R&D performance; Cost-leveraging (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:103:y:2019:i:c:p:376-386 DOI: 10.1016/j.jbusres.2018.01.007 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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