R&D (Re)location and offshore outsourcing: A management perspective

International Journal of Management Reviews

Volumn 13, Issue 4, 2011, Pages 393-413

  Rilla, Nina ^a   Squicciarini, Mariagrazia ^b  

^a VTT TECHNICAL RESEARCH CENTRE OF FINLAND   (Finland)

^b OECD   (France)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 80355147124     PISSN: 14608545     EISSN: 14682370     Source Type: Journal    
DOI: 10.1111/j.1468-2370.2011.00297.x     Document Type: Article

References (107)

1. Almeida, P. (1996). Knowledge sourcing by foreign multinationals: patent citation analysis in the U.S. semiconductor industry. Strategic Management Journal, 17, pp. 155-166.
2. Argyres, N. and Mayer, K.I. (2007). Contract design as a firm capability: an integration of learning and transaction cost perspectives. Academy of Management Review, 32, pp. 1060-1077.
3. Argyres, N., Bercovitz, J. and Mayer, K. (2007). Complementarity and evolution of contractual provisions: an empirical study of IT services contracts. Organization Science, 18, pp. 3-19.
4. Baily, M. and Farrell, D. (2004). Exploding the myths about offshoring. McKinsey Quarterly, July.
5. Bardhan, A. (2006). Managing globalization of R&D: organizing for offshoring innovation. Human Systems Management, 25, pp. 103-114.
6. Barthélemy, J. and Quélin, B.V. (2006). Complexity of outsourcing contracts and ex post transaction costs: an empirical investigation. Journal of Management Studies, 43, pp. 1775-1795.
7. Bartlett, C.A. and Ghoshal, S. (2002). Managing across Borders: The Transnational Solution. Boston, MA: Harvard Business School Press.
8. Beulen, E., Van Fenema, P. and Currie, W. (2005). From application outsourcing to infrastructure management: extending the offshore outsourcing service portfolio. European Management Journal, 23, pp. 133-144.
9. Bhalla, A., Sodhi, M.S. and Son, B.-G. (2008). Is more IT offshoring better? An exploratory study of western companies offshoring to South East Asia. Journal of Operations Management, 26, pp. 322-335.
10. Boardman, L.L., Zeng, A.Z., Gerstenfeld, A. and Berger, P. (2006). Where to outsource: selecting an offshore outsourcing location. Working Paper 2006-10, Boston University School of Management, Boston.
11. Bottini, N., Ernst, C. and Luebker, M. (2007). Offshoring and the labour market: what are the issues? Economic and Labour Market Paper 2007/11, International Labour Organization (ILO), Geneva.
12. Branstetter, L.G., Fisman, R. and Fritz Foley, C. (2006). Do stronger intellectual property rights increase international technology transfer? Empirical evidence from U.S. firm-level panel data. Quarterly Journal of Economics, 121, pp. 321-349.
13. Bunyaratavej, K., Hahn, E.D. and Doh, J.P. (2007). International offshoring of services: a parity study. Journal of International Management, 13, pp. 7-21.
14. Bunyaratavej, K., Hahn, E.D. and Doh, J.P. (2008). Multinational investment and host country development: location efficiencies for services offshoring. Journal of World Business, 43, pp. 227-242.
15. Cantwell, J. and Piscitello, L. (2005). Recent location of foreign-owned research and development activities by large multinational corporations in the European regions: the role of spillovers and externalities. Regional Studies, 39, pp. 1-16.
16. Di Gregorio, D., Musteen, M. and Thomas, D.E. (2009). Offshore outsourcing as a source of international competitiveness for SMEs. Journal of International Business Studies, 40, pp. 969-988.
17. Doh, J., Bunyaratavej, K. and Hahn, E. (2009). Separable but not equal: the location determinants of discrete services offshoring activities. Journal of International Business Studies, 40, pp. 926-943.
18. Doh, J.P. (2005). Offshore outsourcing: implications for international business and strategic management theory and practice. Journal of Management Studies, 42, pp. 695-704.
19. Dossani, R. and Kenney, M. (2007). The next wave of globalization: relocating service provision to India. World Development, 35, pp. 772-791.
20. Dunning, J.H. and Narula, R. (1995). The R&D activities of foreign firms in the United States. International Studies of Management and Organization, 25, pp. 39-75.
21. Economist Intelligence Unit (2004). Scattering the Seeds of Invention. The Globalisation of Research and Development. London: The Economist.
22. Ellram, L.M., Tate, W.L. and Billington, C. (2008). Offshore outsourcing of professional services: a transaction cost economics perspective. Journal of Operations Management, 26, pp. 148-163.
23. Enkel, E., Gassmann, O. and Chesbrough, H. (2009). Open R&D and open innovation: exploring the phenomenon. R&D Management, 39, pp. 311-316.
24. Ernst, D. (2006). Innovation offshoring: Asia's emerging role in global innovation networks. East-West Center Special Reports 10, Hawaii (US).
25. Espino-Rodriguez, T.F. and Padrón-Robaina, V. (2006). A review of outsourcing from the resource-based view of the firm. International Journal of Management Reviews, 8, pp. 49-70.
26. Farrell, D. (2005). Offshoring: value creation through economic change. Journal of Management Studies, 42, pp. 675-683.
27. Farrell, D., Laboissiere, M.A. and 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, pp. 23-34.
28. Feinberg, S.E. and Gupta, A.K. (2004). Knowledge spillovers and the assignment of R&D responsibilities to foreign subsidiaries. Strategic Management Journal, 25, pp. 823-846.
29. Fifarek, B.J., Veloso, F.M. and Davidson, C.I. (2008). Offshoring technology innovation: a case study of rare-earth technology. Journal of Operations Management, 26, pp. 222-238.
30. Florida, R. (1997). The globalization of R&D: results of a survey of foreign-affiliated R&D laboratories in the USA. Research Policy, 26, pp. 85-103.
31. Gassmann, O. and von Zedtwitz, M. (1999). New concepts and trends in international R&D organization. Research Policy, 28, pp. 231-250.
32. Gassmann, O., Enkel, E. and Chesbrough, H. (2010). The future of open innovation. R&D Management, 40, pp. 213-221.
33. Gertler, M.S. (1995). 'Being there': proximity, organization, and culture in the development and adoption of advanced manufacturing technologies. Economic Geography, 71, pp. 1-26.
34. Grant, R. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17, pp. 109-122.
35. Grönroos, C. (1990). Service Management and Marketing: Managing the Moment of Truth in Service Competition. Lexington, MA: Lexington Books.
36. Hahn, E. and Bunyaratavej, K. (2010). Services cultural alignment in offshoring: the impact of cultural dimensions on offshoring location choices. Journal of Operations Management, 28, pp. 186-193.
37. Håkanson, L. (1992). Locational determinants of foreign R&D in Swedish multinationals. In Grandstand, O., Håkanson, L. and Sjölander, S. (eds), Technology Management and International Business: Internationalisation of R&D and Technology. Chichester: Wiley, pp. 97-115.
38. Hätönen, J. (2009). Making the locational choice: a case approach to the development of a theory of offshore outsourcing and internationalization. Journal of International Management, 15, pp. 61-76.
39. Hätönen, J. and Eriksson, T. (2009). 30+ years of research and practice of outsourcing - exploring the past and anticipating the future. Journal of International Management, 15, pp. 142-155.
40. Hellman, P. (1996). Internationalization of the Finnish Financial Service Sector. Publication Series A-6, Turku School of Economics and Business Administration, Turku.
41. Hofstede, G. (1980). Culture's Consequences: International Differences in Work-Related Values. Beverly Hills, CA: Sage.
42. Hofstede, G. (2001). Culture's Consequences, Comparing Values, Behaviors, Institutions, and Organizations across Nations. Thousand Oaks, CA: Sage.
43. Howells, J. (1996). Tacit knowledge, innovation and technology transfer. Technology Analysis & Strategic Management, 8, pp. 91-106.
44. Howells, J., Gagliardi, D. and Malik, K. (2008). The growth and management of R&D outsourcing: evidence from UK pharmaceuticals. R&D Management, 38, pp. 205-219.
45. Jaffe, A.B., Trajtenberg, M. and Henderson, R. (1993). Geographic localization of knowledge spillovers as evidenced by patent citations. Quarterly Journal of Economics, 108, pp. 577-598.
46. Jahns, C., Hartmann, E. and Bals, L. (2006). Offshoring: dimensions and diffusion of a new business concept. Journal of Purchasing and Supply Management, 12, pp. 218-231.
47. Jensen, P.D. and Pedersen, T. (2007). Whether and what to offshore? SMG Working Paper No. 4. Available at:
48. Johanson, J. and Vahlne, J.-E. (1977). The internationalization process of the firm - a model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8, pp. 23-33.
49. Johanson, J. and Vahlne, J.-E. (1990). The mechanism of internationalization. International Marketing Review, 7, pp. 11-24.
50. Jones, O. (2000). Innovation management as a post-modern phenomenon: the outsourcing of pharmaceutical R&D. British Journal of Management, 11, pp. 341-356.
51. Jones, G. and Davis, H. (2000). National culture and innovation: implications for locating global R&D operations. Management International Review, 40, pp. 11-39.
52. Kedia, B.L. and Lahiri, S. (2007). International outsourcing of services: a partnership model. Journal of International Management, 13, pp. 22-37.
53. Kedia, B.L. and Mukherjee, D. (2009). Understanding offshoring: a research framework based on disintegration, location and externalization advantages. Journal of World Business, 44, pp. 250-261.
54. Kenney, M., Massini, S. and Murtha, T.P. (2009). Offshoring administrative and technical work: new fields for understanding the global enterprise. Journal of International Business Studies, 40, pp. 887-900.
55. Khan, N. and Fitzgerald, G. (2004). Dimensions of offshore outsourcing business models. Journal of Information Technology Cases and Applications, 6, pp. 35-51.
56. Khurana, A. (2006). Strategies for global R&D. Research Technology Management, 49, pp. 48-58.
57. Kogut, B. and Singh, H. (1988). The effect of national culture on the choice of entry model. Journal of International Business Studies, 19, pp. 411-433.
58. Kohler, W. and Wrona, J. (2010). Offshoring tasks, yet creating jobs? CESifo Working Paper Series No. 3019.
59. Kotabe, M. and Swan, K.S. (1994). Offshore sourcing: reaction, maturation, and consolidation of U.S. multinationals. Journal of International Business Studies, 25, pp. 115-141.
60. Kshetri, N. (2007). Institutional factors affecting offshore business process and information technology outsourcing. Journal of International Management, 13, pp. 38-56.
61. Kuemmerle, W. (1999). The drivers of foreign direct investment into research and development: an empirical investigation. Journal of International Business Studies, 30, pp. 1-24.
62. Lahiri, S. and Kedia, B. (2009). The effects of internal resources and partnership quality on firm performance: an examination of Indian BPO providers. Journal of International Management, 15, pp. 209-224.
63. Le Bas, C. and Sierra, C. (2002). 'Location versus home country advantage' in R&D activities: some further results on multinationals' locational strategies. Research Policy, 31, pp. 589-609.
64. Levy, D.L. (2005). Offshoring in the new global political economy. Journal of Management Studies, 42, pp. 685-693.
65. Lewin, A.Y. and Peeters, C. (2006). Offshoring work: business hype or the onset of fundamental transformation? Long Range Planning, 39, pp. 221-239.
66. Lewin, A.Y., Massini, S. and Peeters, C. (2009). Why are companies offshoring innovation? The emerging global race for talent. Journal of International Business Studies, 40, pp. 901-925.
67. Li, J. and Kozhikode, R.K. (2009). Developing new innovation models: shifts in the innovation landscapes in emerging economies and implications for global R&D management. Journal of International Management, 15, pp. 328-339.
68. Linder, J.C., Jarvenpaa, S. and Davenport, T.H. (2003). Toward an innovation sourcing strategy. MIT Sloan Management Review, 44, pp. 43-49.
69. Majkgård, A. (1998). Experiential knowledge in the internationalisation process of service firms. Doctoral dissertation, Uppsala University.
70. Manning, S., Massini, S. and Lewin, A.Y. (2008). A dynamic perspective on next-generation offshoring: the global sourcing of science and engineering skills. Academy of Management Perspectives, 22, pp. 35-54.
71. Maskell, P., Pedersen, T., Petersen, B. and Dick-Nielsen, J. (2007). Learning paths to offshore outsourcing: from cost reduction to knowledge seeking. Industry and Innovation, 14, pp. 239-257.
72. Mehta, A., Armenakis, A., Mehta, N. and Irani, F. (2006). Challenges and opportunities of business process outsourcing in India. Journal of Labor Research, 27, pp. 323-338.
73. Mehta, S. and Peters, L.S. (2007). Outsourcing a core competency. Research Technology Management, 50, pp. 28-35.
74. Metters, R. and Verma, R. (2008). History of offshoring knowledge services. Journal of Operations Management, 26, pp. 141-147.
75. Mirani, R. (2007). Procedural coordination and offshored software tasks: lessons from two case studies. Information and Management, 44, pp. 216-230.
76. Mol, M.J., Pauwels, P., Matthyssens, P. and Quintens, L. (2004). A technological contingency perspective on the depth and scope of international outsourcing. Journal of International Management, 10, pp. 287-305.
77. Naghavi, A. (2007). Strategic intellectual property rights policy and North-South technology transfer. Review of World Economics, 143, pp. 55-78.
78. Narula, R. (2004). R&D collaboration by SMEs: new opportunities and limitations in the face of globalisation. Technovation, 24, pp. 153-161.
79. OECD (2002). Frascati Manual. Proposed Standard Practice for Surveys on Research and Experimental Development. Paris: OECD.
80. OECD (2007). Offshoring and Employment: Trends and Impacts. Paris: OECD.
81. OECD (2008). Open Innovation in Global Networks. Paris: OECD.
82. Ørberg Jensen, P. (2009). A learning perspective on the offshoring of advanced services. Journal of International Management, 15, pp. 181-193.
83. Paju, T. (2007). Conceptual model of R&D offshore outsourcing. Journal of Global Business and Technology, 3, pp. 49-61.
84. Patel, P. and Pavitt, K. (1991). Large firms in the production of the world's technology: an important case of 'non-globalisation'. Journal of International Business Studies, 22, pp. 1-21.
85. Patel, P. and Vega, M. (1999). Patterns of internationalisation of corporate technology: location vs. home country advantages. Research Policy, 28, pp. 145-155.
86. Porter, M.E. (1991). Changing patterns of international competition. In Vernon-Wortzel, H. and Wortzel, L. (eds), Global Strategic Management, 2nd edn. New York: John Wiley, pp. 111-135.
87. Quélin, B. and Duhamel, F. (2003). Bringing together strategic outsourcing and corporate strategy: outsourcing motives and risks. European Management Journal, 21, pp. 647-661.
88. Quinn, J.B. (2000). Outsourcing innovation: the new engine of growth. Sloan Management Review, 41, pp. 13-29.
89. Santos-Paulino, A.U., Squicciarini, M. and Fan, P. (2008). R&D (re)location: a bird's eye (re)view. UNU-WIDER Research Paper No. 2008/100, Helsinki.
90. Shimizutani, S. and Todo, Y. (2008). What determines overseas R&D activities? The case of Japanese multinational firms. Research Policy, 37, pp. 530-544.
91. Smarzynska Javorcik, B. (2004). The composition of foreign direct investment and protection of intellectual property rights: evidence from transition economies. European Economic Review, 48, pp. 39-62.
92. Song, J. and Shin, J. (2008). The paradox of technological capabilities: a study of knowledge sourcing from host countries of overseas R&D operations. Journal of International Business Studies, 39, pp. 291-303.
93. Sparrow, P. and Braun, W. (2007). HR sourcing and shoring: strategies, drivers, success factors and implications for HR. Working Paper 2007-05, Lancaster University Management School Centre for Performance-Led Human Resources, Lancaster.
94. Squicciarini, M. and Loikkanen, T. (eds) (2008). Going Global: The Challenges for Knowledge Based Economies Helsinki: Ministry of Employment and the Economy.
95. Stack, M. and Downing, R. (2005). Another look at offshoring: which jobs are at risk and why? Business Horizons, 48, pp. 513-523.
96. Stauss, B. and Jedrassczyk, M. (2008). Business Process Outsourcing (BPO): value creation through external service providers. Journal of Applied Management and Entrepreneurship, 13, pp. 20-34.
97. Tate, W.L. and Ellram, L.M. (2009). Offshore outsourcing: a managerial framework. Journal of Business & Industrial Marketing, 24, pp. 256-268.
98. Teece, D. (1998). Capturing value from knowledge assets: the new economy, markets for know-how, and intangible assets. California Management Review, 40, pp. 55-79.
99. Trent, R.J. and Monczka, R.M. (2005). Achieving excellence in global sourcing. MIT Sloan Management Review, 47, pp. 24-32.
100. UNCTAD (2005). World Investment Report: Transnational Corporations and the Internationalization of R&D. New York: United Nations.
101. Venkatraman, V.N. (2004). Offshoring without guilt. MIT Sloan Management Review, 45, pp. 14-16.
102. Williamson, O.E. (1989). Transaction cost economies. In Schmalensee, R. and Willig, R. (eds), Handbook of Industrial Organization. New York: North Holland, pp. 135-182. Available at: (last accessed 20 May 2010).
103. Williamson, O.E. (2008). Outsourcing: transaction cost economics and supply chain management. Journal of Supply Chain Management, 44, pp. 5-16.
104. Yamin, M. and Otto, J. (2004). Patterns of knowledge flows and MNE innovative performance. Journal of International Management, 10, pp. 239-258.
105. Youngdahl, W. and Ramaswamy, K. (2008). Offshoring knowledge and service work: a conceptual model and research agenda. Journal of Operations Management, 26, pp. 212-221.
106. von Zedtwitz, M. (2006). International R&D strategies of TNCs from developing countries: the case of China. In UNCTAD (ed.), Globalization of R&D and Developing Countries. New York: United Nations, pp. 117-140.
107. von Zedtwitz, M., Gassmann, O. and Boutellier, R. (2004). Organizing global R&D: challenges and dilemmas. Journal of International Management, 10, pp. 21-49.