The Impact of Captive Innovation Offshoring on the Effectiveness of Organizational Adaptation
(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)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/7605095
- author
- Baier, Elisabeth ; Rammer, Christian and Schubert, Torben LU
- organization
- publishing date
- 2015
- 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
- 2016-04-01 10:26:32
- date last changed
- 2024-01-06 16:34:03
@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}},
keywords = {{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}},
doi = {{10.1016/j.intman.2015.03.002}},
volume = {{21}},
year = {{2015}},
}