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Technological capabilities and the decision to outsource/outsource offshore R&D services

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  • Martínez-Noya, Andrea
  • García-Canal, Esteban

Abstract

We analyze firm and environmental factors influencing the decision to outsource and outsource offshore R&D services. To do so, we have adopted a co-evolutionary approach adapted to firm internationalization, according to which these decisions are conditioned by the institutional environment (the IPR system), managerial intentionality (firms' international strategy) and organizational path dependence and learning (firms' technological and governance capabilities). Specifically, we argue that: (1) firms with more technological capabilities will tend to both outsource and outsource offshore R&D services, (2) the positive effect of technological capabilities would be leveraged when the institutional context of the firms' country of origin has allowed them to transform their technological expertise into governance capabilities, and (3) that those firms with a higher local responsiveness attitude will be more likely to outsource offshore R&D services. We have found support for our hypotheses using survey data from a sample of 182 technology intensive firms from the European Union and the US.

Suggested Citation

  • Martínez-Noya, Andrea & García-Canal, Esteban, 2011. "Technological capabilities and the decision to outsource/outsource offshore R&D services," International Business Review, Elsevier, vol. 20(3), pages 264-277, June.
    • Handle: RePEc:eee:iburev:v:20:y:2011:i:3:p:264-277
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    4. Lewin, Arie Y. & Volberda, Henk W., 2011. "Co-evolution of global sourcing: The need to understand the underlying mechanisms of firm-decisions to offshore," International Business Review, Elsevier, vol. 20(3), pages 241-251, June.
    5. Suma Athreye & Lucia Piscitello & Kenneth C. Shadlen, 2020. "Twenty-five years since TRIPS: Patent policy and international business," Journal of International Business Policy, Palgrave Macmillan, vol. 3(4), pages 315-328, December.

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