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

In English

Författare

Summary, in English

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.

Avdelning/ar

Publiceringsår

2015

Språk

Engelska

Sidor

150-165

Publikation/Tidskrift/Serie

Journal of International Management

Volym

21

Issue

2

Dokumenttyp

Artikel i tidskrift

Förlag

Elsevier

Ämne

  • Business Administration

Nyckelord

  • Internationalization
  • Offshoring
  • Innovation
  • Organizational adaptation
  • Organizational adaptability

Status

Published

ISBN/ISSN/Övrigt

  • ISSN: 1075-4253