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The Impact of Captive Innovation Offshoring on the Effectiveness of Organizational Adaptation

Baier, Elisabeth; Rammer, Christian and Schubert, Torben LU (2015) In Journal of International Management 21(2). p.150-165
Abstract
We analyze the effects of captive offshoring of innovation activities on the firms' ability to adapt their organizational structures. Basing our arguments on the complexity theory, we use three consecutive waves of the German part of the Community Innovation Survey to test our hypotheses. We find an inverted u-shape of innovation offshoring on the effectiveness of organizational adaptability, implying an optimal threshold value of innovation offshoring. This value is 11% for the share of off shored R&D, 15% for downstream innovation activities such as local market adaptation, and 34% for design activities. We also analyze several contingency variables. In particular, we show that the costs of innovation offshoring in terms of reduced... (More)
We analyze the effects of captive offshoring of innovation activities on the firms' ability to adapt their organizational structures. Basing our arguments on the complexity theory, we use three consecutive waves of the German part of the Community Innovation Survey to test our hypotheses. We find an inverted u-shape of innovation offshoring on the effectiveness of organizational adaptability, implying an optimal threshold value of innovation offshoring. This value is 11% for the share of off shored R&D, 15% for downstream innovation activities such as local market adaptation, and 34% for design activities. We also analyze several contingency variables. In particular, we show that the costs of innovation offshoring in terms of reduced organizational adaptation are increased by a regional dispersion of the offshoring activities and strong embeddedness in onshore networks. We also show that smaller firms find it easier to deal with the management complexity induced by geographical dispersion of innovation activities. 2015 Elsevier Inc. All rights reserved. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Internationalization, Offshoring, Innovation, Organizational adaptation, Organizational adaptability
in
Journal of International Management
volume
21
issue
2
pages
150 - 165
publisher
Elsevier
external identifiers
  • wos:000356138000005
  • scopus:84951770306
ISSN
1075-4253
DOI
10.1016/j.intman.2015.03.002
language
English
LU publication?
yes
id
ff47d384-d8b7-4203-9d96-068a9b2c3fd1 (old id 7605095)
date added to LUP
2015-07-22 09:39:54
date last changed
2017-10-22 03:15:30
@article{ff47d384-d8b7-4203-9d96-068a9b2c3fd1,
  abstract     = {We analyze the effects of captive offshoring of innovation activities on the firms' ability to adapt their organizational structures. Basing our arguments on the complexity theory, we use three consecutive waves of the German part of the Community Innovation Survey to test our hypotheses. We find an inverted u-shape of innovation offshoring on the effectiveness of organizational adaptability, implying an optimal threshold value of innovation offshoring. This value is 11% for the share of off shored R&D, 15% for downstream innovation activities such as local market adaptation, and 34% for design activities. We also analyze several contingency variables. In particular, we show that the costs of innovation offshoring in terms of reduced organizational adaptation are increased by a regional dispersion of the offshoring activities and strong embeddedness in onshore networks. We also show that smaller firms find it easier to deal with the management complexity induced by geographical dispersion of innovation activities. 2015 Elsevier Inc. All rights reserved.},
  author       = {Baier, Elisabeth and Rammer, Christian and Schubert, Torben},
  issn         = {1075-4253},
  keyword      = {Internationalization,Offshoring,Innovation,Organizational adaptation,Organizational adaptability},
  language     = {eng},
  number       = {2},
  pages        = {150--165},
  publisher    = {Elsevier},
  series       = {Journal of International Management},
  title        = {The Impact of Captive Innovation Offshoring on the Effectiveness of Organizational Adaptation},
  url          = {http://dx.doi.org/10.1016/j.intman.2015.03.002},
  volume       = {21},
  year         = {2015},
}