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Organization of R&D outsourcing: Asymmetric cross?effects between locations

Garc�a-Vega, Mar�a; Huergo, Elena

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Authors

Elena Huergo



Abstract

When companies acquire R&D from external national providers, would they benefit if they also acquired knowledge from foreign providers? And the other way around? These questions are important for the organization of firm knowledge-based activies and R&D governance. In this paper, we try to answer these questions by empirically examining the cross-effects of international and national R&D outsourcing to generate innovation. Using a panel database of about 10,000 Spanish firms, we show that there is asymmetry in the effectiveness of the combined adoption of R&D outsourcing locations: international R&D outsourcing reinforces national R&D outsourcing, but national outsourcing does not reinforce international outsourcing. Therefore, the order of adoption matters; i.e., on average, companies are more innovative if they acquire R&D first from external domestic providers and afterwards from foreign providers. We also find that the mechanism for these effects is related to organizational and management changes in sharing responsibilities and decision-making.

Citation

García-Vega, M., & Huergo, E. (2021). Organization of R&D outsourcing: Asymmetric cross‐effects between locations. Journal of Economics and Management Strategy, 30, 503-524. https://doi.org/10.1111/jems.12422

Journal Article Type Article
Acceptance Date Feb 13, 2021
Online Publication Date Mar 10, 2021
Publication Date 2021-10
Deposit Date Feb 15, 2021
Publicly Available Date Mar 28, 2024
Journal Journal of Economics & Management Strategy
Print ISSN 1058-6407
Electronic ISSN 1530-9134
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 30
Article Number 12422
Pages 503-524
DOI https://doi.org/10.1111/jems.12422
Keywords Management of Technology and Innovation; Strategy and Management; Economics and Econometrics; General Business, Management and Accounting
Public URL https://nottingham-repository.worktribe.com/output/5328896
Publisher URL https://onlinelibrary.wiley.com/doi/10.1111/jems.12422
Additional Information This is the peer reviewed version of the following article: García-Vega,, M., & Huergo,, E. (2021). Organization of R&D outsourcing: Asymmetric cross-effects between locations. J Econ Manage Strat. 30, 503– 524., which has been published in final form at https://doi.org/10.1111/jems.12422 This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.

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