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Article
Publication date: 30 December 2020

Pooja Thakur-Wernz and Christian Wernz

While the phenomenon of R&D offshoring has become increasingly popular, scholars have mostly focused on R&D offshore outsourcing from the point of view of the client…

Abstract

Purpose

While the phenomenon of R&D offshoring has become increasingly popular, scholars have mostly focused on R&D offshore outsourcing from the point of view of the client firms, who are often from an advanced country. By examining vendor firms, in this paper the authors shift the focus to the second party in the dyadic relationship of R&D offshore outsourcing. Specifically, the authors compare vendor firms with nonvendor firms from the same emerging economy and industry to look at whether vendor firms from emerging economies can improve their innovation performance by learning from their clients. The authors also look at the role of depth and breadth of existing technological capabilities of the vendor firm in its ability to improve its innovation performance.

Design/methodology/approach

This study is based on firm-level data from the Indian biopharmaceutical industry between 2005 and 2016. The authors use the Heckman two-stage model to control for self-selection by firms. The authors compare the innovation performance of vendor firms with nonvendor biopharmaceutical firms (group vs nongroup analysis) as well as innovation performance across vendor firms (within group comparison).

Findings

The authors find that, compared to nonvendor firms, R&D offshore outsourcing vendor firms from emerging economies have higher innovation performance. The authors argue that this higher innovation performance among vendor firms is due to learning from their clients. Among vendor firms, the authors find that the innovation gains are contingent upon the two factors of depth and breadth of the vendor firms' technological capabilities.

Research limitations/implications

This paper makes three contributions: First, the authors augment the nascent stream of research on innovation from emerging economy firms. The authors introduce a new mechanism for emerging economy firms to learn and upgrade their capabilities. Second, the authors contribute to the literature on global value chains, by showing that vendor firms are able to learn from their clients and upgrade their capabilities. Third, by examining the innovation by vendor firms, the authors contribute to the R&D offshore outsourcing, which has largely focused on the client.

Practical implications

The study findings have important implications for both clients and vendors. For client firms, the authors provide evidence that knowledge spillovers do happen, and R&D offshore outsourcing can turn vendors into potential competitors. This research helps firms from emerging economies by showing that becoming vendors for R&D offshore outsourcing is a viable option to learn from foreign firms and improve innovation performance. Going outside geographic boundaries may be a large hurdle for these resource-strapped, emerging economy firms. Providing offshore outsourcing services for narrow slices of R&D activities may be a starting point for these firms to upgrade their capabilities.

Originality/value

This paper is among the first to quantitatively study the innovation performance of vendor firms from emerging economies. The authors also contribute to the nascent literature on innovation in emerging economy firms by showing that providing R&D offshore outsourcing services to client firms from advanced countries can improve firms' innovation performance.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 2 January 2018

Abdul Ali and Ken Matsuno

Following the resource-based view, this paper aims to investigate the business performance impact of R&D–marketing integration and marketing and technical capabilities at…

Abstract

Purpose

Following the resource-based view, this paper aims to investigate the business performance impact of R&D–marketing integration and marketing and technical capabilities at the organization level in a non-Western context. Specifically, this work explores the mediating role of the two capabilities, while accounting for potential moderating effects and under the contingency of technological turbulence.

Design/methodology/approach

Survey data were collected from the paired marketing and R&D executives of 207 Japanese manufacturing companies. Data were analyzed using structural equation modeling.

Findings

The results show that marketing capability – by itself and also coupled with technical capability – mediates the relationship between R&D–marketing integration and business performance, while technical capability alone does not.

Research limitations/implications

This study’s subjective performance measures and cross-sectional design have inherent limitations. The exploration of antecedents and other contingency variables would provide ample scope for future research.

Practical implications

The findings suggest that managers need to build these two capabilities, especially marketing capability, because R&D–marketing integration by itself will not be sufficient to improve business performance.

Originality/value

This study provides empirical evidence for a new theoretical link through which R&D–marketing integration impacts business performance at the program level. The findings may also partially explain the mixed and conflicting results often found in past studies.

Details

Journal of Asia Business Studies, vol. 12 no. 1
Type: Research Article
ISSN: 1558-7894

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Article
Publication date: 22 March 2011

Chinho Lin, JyunLin Jiang, Ya‐Jung Wu and ChiaChi Chang

The purpose of this paper is to present a cooperation model identifying the R&D capability as the central driver of startup commercialization strategy, by which new…

Abstract

Purpose

The purpose of this paper is to present a cooperation model identifying the R&D capability as the central driver of startup commercialization strategy, by which new startups can evaluate their relative R&D capability and consequently choose an appropriate commercialization strategy.

Design/methodology/approach

A cooperation model has been constructed, and drawing upon the patent data of 91 aluminum nitride manufacturers, the implications of R&D capability for commercialization strategy are illustrated.

Findings

The authors' analysis suggests that competitive interaction between startup innovators and established firms depends on the R&D capability of the startup innovators, which can be evaluated by patent data.

Practical implications

For technologically efficient firms, a high level of integration to achieve the benefits of economies of scope will lead to more profits. However, for technologically inefficient firms, maintaining a low level of integration to achieve the benefits of specialization is the better strategy.

Originality/value

This paper provides a simplified model which combines an evaluation of R&D capability using patent data with strategic decision making to facilitate successful commercialization in startups.

Details

Industrial Management & Data Systems, vol. 111 no. 3
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 6 November 2017

Kristina Babelytė-Labanauskė and Šarunas Nedzinskas

The purpose of this paper is to reveal and justify influential factors of dynamic capabilities on research organizations’ R&D and innovation performance.

Abstract

Purpose

The purpose of this paper is to reveal and justify influential factors of dynamic capabilities on research organizations’ R&D and innovation performance.

Design/methodology/approach

Adoption of seminal D. Teece’s (1997) concept of dynamic capabilities and operationalized matrix of key performance indicators in the area of R&D and innovation allowed the construction of the strategic management model for research organizations, consequently tested by methods of statistical analysis.

Findings

The empirical findings reveal that there exists positive influence of the dynamic capabilities on research organizations’ R&D and innovation performance. Explicitly, sensing, seizing and re-configuring dimensions of dynamic capabilities have positive impact on R&D and innovation results; consequently, the peculiarities of their inter-dependencies are identified.

Research limitations/implications

Delivered research is based on the investigation of Lithuanian research organizations’ dynamic capabilities and their impact on their R&D and innovation performance. Therefore, further research could be extended to foreign countries.

Practical implications

The model on management of research organization’s dynamic capabilities with the aim for better R&D and innovation performance is conceptualized and specified hereinafter. In the course of the research, constructed toolkit to eventually measure research organization’s R&D and innovation performance or use it as the set of key performance indicators in the benchmarking exercise is suggested.

Originality/value

The paper is one of the first to suggest novel application of dynamic capabilities’ view within the domain of research organizations.

Details

Journal of Modelling in Management, vol. 12 no. 4
Type: Research Article
ISSN: 1746-5664

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Article
Publication date: 26 July 2021

Duy Quoc Nguyen

Organizational innovations are closely associated with organizational knowledge, and thus a firm builds its knowledge base to enhance its innovative performance. However…

Abstract

Purpose

Organizational innovations are closely associated with organizational knowledge, and thus a firm builds its knowledge base to enhance its innovative performance. However, insights into this process are still limited, especially in the context of firms in developing countries. Building on the dynamic managerial capabilities literature and open innovation paradigm, this paper attempts to fill this gap by developing and empirically testing a model that investigates how firms in developing countries accumulate knowledge to innovate.

Design/methodology/approach

A model of a firm's knowledge accumulation and innovation is proposed in which it specifies relationships among absorptive capacity, knowledge breadth, research and development (R&D), knowledge depth, exploratory innovation and exploitative innovation, and then it is empirically tested by using the structural equation modeling (SEM) technique based on the surveyed data of Vietnamese firms.

Findings

The results indicate that absorptive capacity positively influences both knowledge breadth and knowledge depth, knowledge breadth positively influences R&D, R&D positively influences exploratory innovation and knowledge depth, and knowledge depth positively influences exploratory and exploitative innovation.

Practical implications

The study proposes an “acquire and develop” open innovation model for firms in developing countries in which firms acquire external technologies and then develop R&D (develop and design) capability to adapt acquired technologies to their local conditions to create new organizational-specific capabilities and exploratory innovation.

Originality/value

This study argues that external knowledge acquisition is beneficial to innovative performance of firms in developing countries via renewing their knowledge base. Furthermore, the study provides the unique evidence that novel external knowledge acquisition and internal R&D are fit to each other in the fit-as-mediation form in which novel external knowledge acquisition is mediated by R&D to positively influence exploratory innovation.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 28 September 2018

Katarina Lagerström, Roger Schweizer and Johan Jakobsson

The purpose of this paper is to contribute to the literature discussing the internationalization of research and development (R&D) among multinational companies by…

Abstract

Purpose

The purpose of this paper is to contribute to the literature discussing the internationalization of research and development (R&D) among multinational companies by proposing a process description to capture the development of local R&D capabilities in subsidiaries.

Design/methodology/approach

The authors build the conceptualization not only on the prevailing literature on resource management, subsidiary evolution and subsidiary initiatives, but also on empirical observations.

Findings

A process in four phases is distinguished to describe the evolution of R&D capabilities in subsidiaries: the identification of an opportunity in the host country that triggers the establishment of local R&D capabilities; the gathering of support – from the host country and from MNC internally – and resources; the bundling of the resources to build capabilities; and finally the leveraging of the capabilities.

Research limitations/implications

By offering a conceptualization of the process through which subsidiaries build R&D capabilities, the authors contribute to the literature on R&D internationalization that hitherto has neglected the central role played by subsidiaries and the fact that a subsidiary needs to develop and manage resources and capabilities to change its R&D related role and/or mandate within the MNC.

Originality/value

By providing a process perspective on MNCs internationalization of R&D focussing on the development and management of R&D capabilities at subsidiaries, the paper adds a more dynamic dimension to the previously rather static view on R&D internationalization.

Details

Multinational Business Review, vol. 27 no. 1
Type: Research Article
ISSN: 1525-383X

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Article
Publication date: 1 April 2003

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination…

Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

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Article
Publication date: 17 January 2019

Kadígia Faccin, Alsones Balestrin, Bibiana Volkmer Martins and Claudia Cristina Bitencourt

The purpose of this study is to identify dynamic capabilities in joint R&D projects, that enable them to successfully achieve knowledge creation and discover how they…

Abstract

Purpose

The purpose of this study is to identify dynamic capabilities in joint R&D projects, that enable them to successfully achieve knowledge creation and discover how they behave throughout the life cycle of a collaborative project, although this understanding could enhance the interorganizational knowledge creation process.

Design/methodology/approach

The authors conducted 65 semi-structured interviews and utilized secondary data from a joint R&D project. The authors analyzed all data using the Gioia method.

Findings

The authors confirm that specific dynamic capabilities are needed to create interorganizational knowledge and discovered 11 knowledge-based dynamic capabilities (KBDCs) for successful innovation results in joint R&D projects. Gioia method allowed to discover that different KBDCs are necessary for the different phases of the project lifecycle. Additionally, the authors identify two microprocesses in which KBDCs are engaged in joint R&D projects, knowing that is a part of the sensing and seizing processes and synthetizing that is a part of the seizing process, and establish several KBDC microfoundations.

Research limitations/implications

We used retrospective interviews. This kind of interviews are impacted by the experiences of the respondents lived after they have participated in the joint R&D project.

Practical implications

Dynamic capabilities for collaborative knowledge creation and their specific microfoundations can help managers delineate their strategic practices and actions to achieve more sustainable, long-lasting results from joint R&D projects.

Originality/value

The authors improve Teece’s model and propose two microprocesses in which dynamic capabilities are engaged, that emerged in the context of a joint R&D project, knowing that is a part of the sensing and seizing processes and synthetizing that is a part of the seizing process, which supplement those already known: sensing, seizing and transforming. The authors tested the Gioia method, which is important for detecting dynamic capabilities; therefore, the authors propose a methodological advance that can contribute to future studies. The authors provide an interorganizational perspective on KBDC and a methodological view of the changes in KBDCs required for joint R&D projects.

Details

Journal of Knowledge Management, vol. 23 no. 3
Type: Research Article
ISSN: 1367-3270

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Article
Publication date: 21 August 2009

Jungeun Cho, Donghee Kim, Soo W. Kim and Jungsuk Oh

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…

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.

Details

Asian Journal on Quality, vol. 10 no. 2
Type: Research Article
ISSN: 1598-2688

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Article
Publication date: 6 April 2010

Ralf Martin Ester, Dimitris Assimakopoulos, Maximilian von Zedtwitz and Xiubao Yu

How does the internationalization of R&D influence the development of dynamic capabilities? Based on the observation that Chinese high‐tech companies internationalize…

Abstract

Purpose

How does the internationalization of R&D influence the development of dynamic capabilities? Based on the observation that Chinese high‐tech companies internationalize parts of their R&D activities to Western countries before they have established sound domestic R&D capabilities and in opposition to other held beliefs about internationalization drivers this paper aims to investigate the role of global R&D organizational structure in the development of dynamic capabilities.

Design/methodology/approach

This research is based on a qualitative case study using data of one Chinese high‐tech firm to develop testable propositions.

Findings

The research develops three main propositions: the loss of competitive advantage and relevant capabilities in the domestic market is more important to the internationalization of R&D than an attempt to enter new international markets; in joint development teams with a partner company, a functional R&D team sub‐structure using heavyweight or autonomous teams leads to a higher degree of knowledge exchange in the partner sub‐project organization; R&D projects conducted in organizations with higher formal control lead to a higher degree of learning than R&D projects conducted when control is shared with a partner; R&D projects which rely extensively on external knowledge (with no formal control) produce better outcomes for learning than projects conducted under joint control; R&D projects which rely extensively on external knowledge (with no formal control) produce better outcomes for learning than projects conducted in full control.

Research limitations/implications

As the research is based on data of one single case study there are several inherent limitations regarding validity and reliability which need to be covered by future research.

Originality/value

This paper posits that R&D internationalization has a positive influence on the development of dynamic capabilities.

Details

Journal of Knowledge-based Innovation in China, vol. 2 no. 1
Type: Research Article
ISSN: 1756-1418

Keywords

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