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Toward a Perspective on R&D Outsourcing: RBV and Firm Performance

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  • Anne W. Fuller

    (Sacramento State University, Sacramento CA, USA)

Abstract

This paper looks at the vital role of industrial research and development (R&D). The increased outsourcing of industrial R&D is contrasted with a resource-based view of competitive advantage which maintains capabilities that are valuable, rare, imitable, and non-substitutable (VRIN), and should be internalized in the firm. Traditional business formation literature is also supportive of keeping R&D “inhouse”. R&D outsourcing research is leveraged to posit possible reasons for the increased amount of outsourced R&D. Testable propositions are included that look at factors for R&D outsource decisions and also the impact of these decisions on firm performance. An R&D entropy statistic is introduced as well as several R&D characteristics useful in the decision-making process to create R&D.

Suggested Citation

  • Anne W. Fuller, 2018. "Toward a Perspective on R&D Outsourcing: RBV and Firm Performance," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(05), pages 1-14, October.
    • Handle: RePEc:wsi:ijitmx:v:15:y:2018:i:05:n:s0219877018500402
    DOI: 10.1142/S0219877018500402
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