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Factors Affecting on the Performance of Overseas R&D

Jungeun Cho (College of Business Administration, Seoul National University, San 56‐1, Sillim‐dong, Kwanak‐gu, Seoul, Korea 151‐742)
Donghee Kim (College of Business Administration, Seoul National University, San 56‐1, Sillim‐dong, Kwanak‐gu, Seoul, Korea 151‐742)
Soo W. Kim (College of Business Administration, Seoul National University, San 56‐1, Sillim‐dong, Kwanak‐gu, Seoul, Korea 151‐742)
Jungsuk Oh (College of Business Administration, Seoul National University, San 56‐1, Sillim‐dong, Kwanak‐gu, Seoul, Korea 151‐742)

Asian Journal on Quality

ISSN: 1598-2688

Article publication date: 21 August 2009

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Abstract

Many companies are trying to acquire innovative technologies and relevant knowledge by sending R&D work overseas. Although recent research has been focusing on the aspects that motivate MNCs to establish offshore R&D facilities, such as cost reduction and market expansion, little is known about external or circumstantial factors influencing the performance of global R&D activities. Searching for enhancers of offshore R&D facilities, we investigated the relationships between the performance of offshore R&D and the technological capabilities of a parent company, its home country, and its R&D hosting country. Both patent data of EU and the EU R&D scoreboard of 134 overseas R&D labs from 46 MNCs, dating from the period of 2003 to 2005, are used in the analysis. The same time period is applied in calculating the RTA of each country. Regression analysis results support our main hypothesis that the technological capabilities of the parent company and the hosting country positively affect the performance of overseas R&D.

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Citation

Cho, J., Kim, D., Kim, S.W. and Oh, J. (2009), "Factors Affecting on the Performance of Overseas R&D", Asian Journal on Quality, Vol. 10 No. 2, pp. 43-56. https://doi.org/10.1108/15982680980001444

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Emerald Group Publishing Limited

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