Captive Offshoring of New Product Development in Brazil: How Does Arbitrage Influence Local, Collaborative Relationships?

Management International Review

Volumn 50, Issue 6, 2010, Pages 747-773

  Boehe, Dirk M ^a  

^a INSPER INSTITUTE OF EDUCATION AND RESEARCH   (Brazil)

Author keywords

Arbitrage; Brazil; Emerging economies; Multinational corporations; Offshoring; Outsourcing; Subsidiaries

Indexed keywords

EID: 78651103852     PISSN: 09388249     EISSN: None     Source Type: Journal    
DOI: 10.1007/s11575-010-0054-z     Document Type: Article

References (78)

1. Andersson, U., & Forsgren, M. (1996). Subsidiary embeddedness and control in the multinational corporation. International Business Review, 5(5), 487-508.
2. Andersson, U., & Pahlberg, C. (1997). Subsidiary influence on strategic behaviour in MNCs: An empirical study. International Business Review, 6(3), 319-334.
3. Andersson, U., Forsgren, M., & Pedersen, T. (2001). Subsidiary performance in multinational corporations: The importance of technology embeddedness. International Business Review, 10, 3-23.
4. Andersson, U., Forsgren, M., & Holm, U. (2002). The strategic impact of external networks: subsidiary performance and competence development in multinational corporation. Strategic Management Journal, 23(11), 979-996.
5. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
6. Barney, J. (2002). Gaining and sustaining competitive advantage (2nd ed.). Upper Saddle River: Prentice Hall.
7. Belderbos, R. (2003). Entry Mode, organizational learning, and R& D in foreign affiliates: Evidence from Japanese firms. Strategic Management Journal, 24(3), 235-259.
8. Birkinshaw, J., & Hood, N. (1998). Multinational subsidiary evolution: Capability and charter change in foreign-owned subsidiary companies. Academy of Management Review, 23(4), 773-795.
9. Buckley, P., & Casson, M. (1976). The future of the multinational enterprise. London: The McMillan Press Ltd.
10. Cuervo-Cazurra, A., & Dau, L. A. (2009). Promarket reforms and firm profitability in developing countries. Academy of Management Journal, 52(6), 1348-1368.
11. Chen, S. (2005). Extending internalization theory: A new perspective on international technology transfer and its generalization. Journal of International Business Studies, 36(2), 231-245.
12. Chiesa, V. (1995). Globalizing R& D around centers of excellence. Long Range Planning, 28(6), 19-28.
13. Chin, W. (1998). The partial least squares approach to structural equation modeling. In G. Marcoulides (Ed.), Modern business research methods (pp. 295-336). New Jersey: Erlbaum.
14. Chin, W., & Newsted, P. (1999). Structural equation modeling analysis with small samples using partial least squares. In R. Hoyle (Ed.), Statistical strategies for small sample research (pp. 307-341). Thousand Oaks: Sage.
15. Churchill, G. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(2), 64-73.
16. Clark, K. B., & Fujimoto, T. (1991). Product development performance: Strategy, organisation and management in the world auto industry. Boston: Harvard Business School Press.
17. Colombo, M. G. (2003). Alliance form: a test of the contractual and competence perspectives. Strategic Management Journal, 24(12), 1209-1229.
18. Couto, V., Mani, M., Lewin, A., & Peeters, C. (2006). The globalisation of white collar work: Facts and fallouts of next generation offshoring. Booz Allen Hamilton. Available: https://offshoring. fuqua. duke. edu/pdfs/gowc_v4. pdf. Accessed November 2007.
19. Coase, R. (1937). The nature of the firm. Economica, 4(16), 386-405.
20. Criscuolo, P., & Narula, R. (2007). Using multi-hub structures for international R& D: Organizational inertia and the challenges of implementation. Management International Review, 47(5), 639-660.
21. Cronin, B., Catchpowle, L., & Hall, D. (2004). Outsourcing and offshoring. CESifo Forum, 5(2), 17-21.
22. Croteau, A.-M., & Bergeron, F. (2001). An information technology trilogy: Business strategy, technological deployment and organizational performance. Journal of Strategic Information Systems, 10(2), 77-99.
23. Diamantopoulos, A., & Winkelhuber, H. (2001). Index construction with formative indicators: An alternative to scale development. Journal of Marketing Research, 38(2), 269-277.
24. Farrell, D. (2005). Offshoring: Value creation through economic change. Journal of Management Studies, 42(3), 675-683.
25. Farrell, D., Laboissière, M., & Rosenfeld, J. (2006). Sizing the emerging global labor market: Rational behavior from both companies and countries can help it work more efficiently. Academy of Management Perspectives, 20(4), 23-34.
26. Fey, C., & Birkinshaw, J. (2005). External sources of knowledge, governance mode, and R& D performance. Journal of Management, 31(4), 597-621.
27. Florida, R. (1997). The globalization of R& D: Results of a survey of foreign-affiliated R& D laboratories in the USA. Research Policy, 26(1), 85-103.
28. Foss, N. (2003). The strategic management and transaction cost nexus: Past debates, central questions, and future research possibilities. Strategic Organization, 1(2), 139-169.
29. Foss, K., & Foss, N. (2005). Resources and transaction costs: How property rights economics furthers the resource-based view. Strategic Management Journal, 26(6), 541-553.
30. Frost, T. (2001). The geographic sources of foreign subsidiary innovation. Strategic Management Journal, 22(2), 101-123.
31. Frost, T., Birkinshaw, J., & Ensign, P. (2002). Centers of excellence in multinational corporations. Strategic Management Journal, 23(11), 997-1018.
32. Gassmann, O., & Zedtwitz, M. (1999). New concepts and trends in international R& D organization. Research Policy, 28(2/3), 231-250.
33. Ghemawat, P. (2007). Managing differences: The central challenge of global strategy. Harvard Business Review, 85(3), 58-68.
34. Ghoshal, S., & Bartlett, C. (1990). The multinational corporation as an interorganizational network. Academy of Management Review, 15(4), 603-625.
35. Granstrand, O. (1999). Internationalization of corporate R& D: A study of Japanese and Swedish corporations. Research Policy, 28(2/3), 275-301.
36. Herrmann, A., Huber, F., & Kressmann, F. (2006). Partial least squares-Ein Leitfaden zur Spezifikation, Schätzung und Beurteilung varianzbasierter Strukturgleichungsmodelle. Zeitschrift für betriebswirtschaftliche Forschung, 58, 34-66.
37. Hoskisson, R., Eden, L., Lau, C., & Wright, M. (2000). Strategy in emerging economies. Academy of Management Journal, 43(3), 249-267.
38. Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic Management Journal, 20(2), 195-204.
39. IBGE-Instituto Brasileiro de Geografia e Estadística. (2007). Pesquisa de Inovação Tecnológica (Technological Innovation Survey) 2005 (PINTEC). [www document] http://www. ibge. gov. br/home/estatistica/economia/industria/pintec/2005/pintec2005. pdf. Accessed March 2010.
40. Kogut, B., & Zander, U. (1993). Knowledge of the firm and the evolutionary theory of the multinational enterprise. Journal of International Business Studies, 24(4), 625-645.
41. Kotabe, M., & Mudambi, R. (2009). Global sourcing and value creation: Opportunities and challenges. Journal of International Management, 15(2), 121-125.
42. Kuemmerle, W. (1999). Foreign direct investment in industrial research in the pharmaceutical and electronics industries: results from a survey of multinational firms. Research Policy, 28(2/3), 179-93.
43. Lippman, S., & Rumelt, R. (1982). Uncertain imitability: An analysis of interfirm differences in efficiency under competition. The Bell Journal of Economics, 13, 418-438.
44. Lohmöller, J.-B. (1984). LVPLS program manual: Latent variables path analysis with partial least-squares estimation. Köln: Zentralarchiv für empirische Sozialforschung.
45. Lundvall, B. A. (1988). Innovation as an interactive process: From user-producer interaction to the national system of innovation. In G. Dosi, C. Freeman, R. Nelson, G. Silverberg, & L. Soete (Eds.), Technical change and economic theory (pp. 349-369). London: Pinter.
46. Madhok, A. (2002). Reassessing the fundamentals and beyond: Ronald coase, the transaction cost and resource- based theories of the firm and the institutional structure of production. Strategic Management Journal, 23(6), 535-550.
47. Madhok, A., & Tallman, S. (1998). Resources, transactions and rents: Managing value through interfirm collaborative relationships. Organization Science, 9(3), 326-339.
48. Manning, S., Massini, S., & Lewin, A. (2008). A dynamic perspective on next-generation offshoring: The global sourcing of science and engineering talent. Academy of Management Perspectives, 22(3), 35-54.
49. Meyer, K., & Peng, M. (2005). Probing theoretically into central and eastern Europe: Transactions, resources, and institutions. Journal of International Business Studies, 36(6), 600-621.
50. Meyer-Krahmer, F., & Reger, G. (1999). New perspective on the innovation strategies of multinational enterprises: Lessons for technology policy in Europe. Research Policy, 28, 751-776.
51. Medcoff, J. (1999). A taxonomy of internationally dispersed technology units and its application to managerial issues. R& D Management, 27(4), 301-318.
52. Narula, R. (2001). Choosing between internal and non-internal R& D activities: Some technological and economic factors. Technology Analysis & Strategic Management, 13(3), 365-387.
53. Narula, R., & Zanfei, A. (2004). Globalisation of innovation: the role of multinational enterprises. In J. Fagerberg, D. Mowery, & R. Nelson (Eds.), The oxford handbook of innovation (pp. 318-345). Oxford: Oxford University Press.
54. Niosi, J., & Godin, B. (1999). Canadian R& D abroad management practices. Research Policy, 28(2/3), 215-230.
55. Nippa, M., & Rosenberger, B. (2006). Despoiling or augmenting the MNC? Competitive impacts of international outsourcing of new product development, Proceedings of the Academy of Management Meeting, Atlanta, 11-16 August 2006.
56. Norwood, J., Carson, C., Deese, M., Johnson, N., Reeder, F., Rolph, J., & Schwab, S. (2006). Off-shoring an elusive phenomenon, Report of the panel of the National Academy of Public Administration For the U. S. Congress and the Bureau of Economic Analysis, National Academy of Public Administration, Washington, 2006. [www document] http://www. napawash. org/pubs/off-shoringjan06. pdf. Accessed July 2006.
57. Nunally, J. C. (1967). Psychometric Theory. New York: McGraw-Hill.
58. Papanastassiou, M., & Pearce, R. (2005). Funding sources and the strategic roles of decentralised R& D in multinationals. R& D Management, 35(1), 89-100.
59. Pearce, R., & Papanastassiou, M. (1999). Oversseas R& D and the strategic evolution of MNEs: Evidence from laboratories in the UK. Research Policy, 28(1), 23-41.
60. Penrose, E. (1959). The theory of the growth of the firm. London: Basil Blackwell.
61. Podsakoff, P. M., Mackenzie, S., Lee, J. Y., & Podsakoff, N. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879-903.
62. Quadros, R., Consoni, F., & Quintão, R. (2005). R& D outsourcing to research institutions: A new look into R& D in the Brazilian automobile industry, Thirteenth Gerpisa International Colloquium, June, 16-17, 2005, Paris. http://www. inovacao. unicamp. br/report/Gerpisa05. pdf. Accessed March 2010.
63. Reddy, P. (1997) New trends in globalization of corporate R& D and implications for innovation capability in host countries: A Survey from India. World Development, 25(11), 1821-1837.
64. Rugman, A. M., & Verbeke, A. (2003). Extending the theory of the multinational enterprise: Internalization and strategic management perspectives. Journal of International Business Studies, 34(3), 125-137.
65. Rugman, A. M., & Verbeke, A. (2004). A perspective on regional and global strategies of multinational enterprises. Journal of International Business Studies, 35(1), 3-18.
66. Rugman, A. M. (2006). Inside the multinationals: The economics of internal markets (25th Anniversary ed.). New York: Palgrave-McMillan.
67. Sharma, V., & Erramilli, M. (2004). Resource-based explanation of entry mode choice. Journal of Marketing Theory and Practice, 12(1), 1-17.
68. Skinner, W. (1974). The focused factory. Harvard Business Review, 52(3), 113-121.
69. Sobrero, M., & Roberts, E. B. (2001). The trade-off between efficiency and learning in interorganizational relationships for product development. Management Science, 47(4), 493-511.
70. Tsang, E. (2000). Transaction cost and resource-based explanations of joint ventures: A comparison and synthesis. Organization Studies, 21(1), 215-242.
71. Tsui, A. (2004). Contributing to global management knowledge: a case for high quality indigenous research. Asia Pacific Journal of Management, 21(4), 491-513.
72. Tybout, J. R. (2000). Manufacturing firms in developing countries: How well do they do and why? Journal of Economic Literature, 38(1), 11-45.
73. United Nations. (2005). World investment report 2005-Transnational corporations and the internationalization of R& D. New York: United Nations.
74. Veugelers, R., & Cassiman, B. (1999). Make and buy in innovation strategies: Evidence from Belgian manufacturing firms. Research Policy, 28(1), 63-80.
75. Wheelwright, S., & Clark, K. (1992). Revolutionizing product development: Quantum leaps in speed, efficiency and quality. New York: Free Press.
76. Williamson, O. E. (1985). The economic institutions of capitalism. New York: Free Press.
77. Williamson, O. E. (1996). Mechanisms of governance. Oxford: Oxford University Press.
78. Zhao, Y., & Calantone, R. J. (2003). The trend toward outsourcing in new product development: Case studies in six firms. International Journal of Innovation Management, 7(1), 51-66.