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Article
Publication date: 15 November 2023

Xiaozhen Wang, Hanna Lee, Kihyun Park and Gukseong Lee

The study aims to explore the conditional relationships between product modularization and new product development (NPD) efficiency. It is postulated that R&D outsourcing plays an…

Abstract

Purpose

The study aims to explore the conditional relationships between product modularization and new product development (NPD) efficiency. It is postulated that R&D outsourcing plays an important mediating role. Furthermore, the level of competency trust is considered an essential factor in moderating the indirect effect of product modularization on NPD efficiency via R&D outsourcing practices.

Design/methodology/approach

Drawing on transaction cost economics theory, this study suggests a moderated mediation model that addresses how product modularization effectively promotes NPD efficiency via outsourcing practices. The hierarchical regression and PROCESS macro model were conducted to test the hypotheses based on survey data from 273 manufacturing firms in China.

Findings

Product modularization enhances NPD efficiency directly and indirectly through the external collaboration of R&D outsourcing. Furthermore, the role of product modularization in R&D outsourcing practices is more effective when the competency trust in R&D outsourcing partners is high.

Originality/value

By showing the critical role of external collaboration, this study provides valuable insights into how manufacturing firms utilize product modularization to achieve desired NPD performance more effectively.

Details

Journal of Manufacturing Technology Management, vol. 35 no. 1
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 17 November 2014

Andrea Martínez-Noya and Esteban García-Canal

This paper aims to, through the disintegration of the innovation process in this paper, attempt to shed light on what are some of the distinctive features of this phenomenon, such…

Abstract

Purpose

This paper aims to, through the disintegration of the innovation process in this paper, attempt to shed light on what are some of the distinctive features of this phenomenon, such as: Who is outsourcing R&D? What types of R&D services are being outsourced across the R&D value chain and to whom? Where are firms outsourcing these services? and Why do firms decide to outsource them? Outsourcing practices of some stages of the R&D process to specialized providers have been gaining momentum during the past years even by firms operating in high-tech sectors.

Design/methodology/approach

The data used in this paper stem from an original international survey on R&D services outsourcing. This survey includes a sample of 182 US and European Union firms competing in technology-intensive industries.

Findings

This study provides evidence of the existence of a global outsourcing market that covers practically all the R&D stages and is widely used by technological firms. However, it highlights the importance of multinationality to be able to use R&D outsourcing as a tool for value creation.

Originality/value

Despite the relevance of this phenomenon, previous studies tend to analyze the R&D function as a whole. However, through the disintegration of the innovation process, this paper provides original international data which helps to analyze the real magnitude and scope of this R&D offshore outsourcing process at the transactional level.

Details

The Multinational Business Review, vol. 22 no. 4
Type: Research Article
ISSN: 1525-383X

Keywords

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 firms, who…

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.

Article
Publication date: 11 July 2019

Sung Joo Bae and Sangyun Han

How should managers organize their R&D workforce in order to maximize the benefit of internal R&D and R&D outsourcing strategy? The purpose of this paper is to examine the effects…

1117

Abstract

Purpose

How should managers organize their R&D workforce in order to maximize the benefit of internal R&D and R&D outsourcing strategy? The purpose of this paper is to examine the effects of R&D workforce diversity on firms’ performance when the firms use internal and external knowledge acquired from R&D outsourcing. Diversity of R&D employees as R&D workforce can enable firms to utilize the knowledge of internal R&D and internalize the external knowledge.

Design/methodology/approach

Panel data analysis with fixed effects is used. The authors conduct hierarchical multiple regression analyses to test the moderating effect of R&D workforce diversity with 10,401 data from Korean manufacturing firms.

Findings

This study finds out that age and education diversity of R&D workforce have positive moderating effects on the relationship between the R&D outsourcing and firm performance. In contrast, internal R&D is negatively associated with firm performance when the age diversity of R&D workforce increases. The results point to the significant role of R&D workforce diversity in R&D unit since firms often use both internal R&D and external R&D.

Practical implications

For practical implications to be more effective, CEOs and managers of firms should employ differentiated approaches to manage the diversity of R&D workforce based on whether they primarily focus on their internal R&D or utilize external R&D.

Originality/value

This research extends recent efforts to better understand the effect of organizational diversity on the firms’ performance when firms use internal R&D and R&D outsourcing strategy.

Details

European Journal of Innovation Management, vol. 23 no. 3
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 5 June 2007

Yanying Chen and Yijun Yuan

A firm will seek an optimal balance between internal R&D and technology outsourcing when formulating its innovation strategy. This paper aims to provide a review of the…

3495

Abstract

Purpose

A firm will seek an optimal balance between internal R&D and technology outsourcing when formulating its innovation strategy. This paper aims to provide a review of the determinants of firm's innovation strategy, and performs an empirical study on a sample from Chinese high‐tech industry, with the purpose of identifying two aspects of the issue: the choice patterns of Chinese firms over innovation strategy, and the innovation effect elasticity of different strategies.

Design/methodology/approach

The development of a multiple regression model supported by data from industry level and a statistic analysis.

Findings

Outsourcing is the major innovation strategy adopted by most Chinese high‐tech firms, especially technology import, which implies the imperfection of Chinese innovation service system. The empirical analysis also indicates the insufficiency of internal R&D expenditure and the weakness of absorptive capacity in Chinese high‐tech firms. Although, Chinese high‐tech firms prefer the outsourcing strategy in their innovation, the contribution of outsourcing is much smaller than that of internal R&D. When expenditures are increased by the same rate, the innovation output form internal R&D is twice the output of outsourcing. For improving Chinese firms' innovation efficiency, the reform of innovation service system is needed on the macro‐level, while on the micro‐level, it calls for firms to readjust their innovation strategy portfolio.

Originality/value

This paper will make up for the deficiency in current researches on innovation, which often apply firm samples in developed countries, and lack evidences from firm samples in developing countries. In addition, it will provide the decision‐making basis for Chinese Government's current actions in constructing and improving China's innovation service system.

Details

Journal of Technology Management in China, vol. 2 no. 2
Type: Research Article
ISSN: 1746-8779

Keywords

Article
Publication date: 17 May 2018

Ebru Ozturk

The purpose of this paper is to investigate the impact of R&D sourcing strategies and their governance modes on basic and developmental R&D. Following the concept of cognitive…

Abstract

Purpose

The purpose of this paper is to investigate the impact of R&D sourcing strategies and their governance modes on basic and developmental R&D. Following the concept of cognitive distance, this research proposes that there are trade-offs between basic and developmental R&D when emerging economy firms engage in different R&D sourcing strategies. R&D sourcing can enable emerging economy firms to access different level of heterogeneity of knowledge inputs depending on the cognitive distance between the firm and its suppliers. Distance in cognition increases when firms obtain knowledge from abroad and independent suppliers in comparison to the acquisition of knowledge from home boundaries and affiliates.

Design/methodology/approach

Tobit maximum likelihood estimation approach is used.

Findings

Using data from Turkish firms, this study finds out that offshore R&D with an outsourcing governance mode affects basic R&D. In contrast, domestic R&D with an insourcing mode influences developmental R&D.

Originality/value

This research extends recent efforts to better understand the determinants of different R&D types by examining offshore and domestic R&D together and by taking into account different governance modes of each R&D sourcing strategy. This study becomes important because it investigates this issue from the perspective of emerging economy firms.

Details

European Journal of Innovation Management, vol. 21 no. 4
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 10 July 2017

Antonello Cammarano, Mauro Caputo, Emilia Lamberti and Francesca Michelino

The purpose of this paper is to provide a patent-based framework for investigating the effect of previous and current open innovation (OI) adoption on firms’ knowledge management…

2211

Abstract

Purpose

The purpose of this paper is to provide a patent-based framework for investigating the effect of previous and current open innovation (OI) adoption on firms’ knowledge management strategies and type of innovation output.

Design/methodology/approach

Patent data are employed for gauging innovation practices, exploitation vs exploration strategies, specialization vs diversification choices and type of innovation. The study is performed on a sample of 1,280 patents granted to 66 top R&D spending bio-pharmaceutical companies. The year of analysis is 2010.

Findings

The previous recourse to specific innovation practices influences the current practice selection. R&D collaboration, outsourcing and mergers and acquisitions are employed to pursue exploration. Past purchase of patents increases the likelihood to achieve architectural and radical innovation in current activities.

Research limitations/implications

The work recommends the use of patent data to gauge many key elements for knowledge and innovation management. Results exhort scholars to investigate innovation practices at the knowledge domain level in order to detect specific behaviors.

Practical implications

The study provides a methodology for supporting decision-makers in assessing firms’ OI adoption, also performing the benchmark with competitors and R&D partners. Given the high computational effort required for applying the methodology, the authors are planning to give access to the software specifically developed for this study.

Originality/value

The work contributes to the current debate considering the effect of a combination of innovation practices on knowledge management strategies and type of innovation output, with a particular focus on OI activities. Moreover, the separation between the impact of previous and current innovation practices provides useful insights.

Details

Management Decision, vol. 55 no. 6
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 7 November 2023

Tesfaye Hailu and Abdella Kosa Chebo

To examine the development of research into the relationship between business process outsourcing (BPO) and innovation, a bibliometric methodology utilizing quantitative…

Abstract

Purpose

To examine the development of research into the relationship between business process outsourcing (BPO) and innovation, a bibliometric methodology utilizing quantitative analytical methodologies was used. With the aid of a visualization analysis of scientific publications, this study also assessed the state of BPO and innovation practices.

Design/methodology/approach

Using the Web of Science database, articles on BPO and innovation that published between 1992 and 2022 were retrieved. Records that had been extracted were examined in terms of publication year, nation, journal, subject area, authors and affiliations with organizations. The research on acupuncture for pain relief was visualized using the VOSviewer application.

Findings

An analysis of 219 original and review papers found that during the past 30 years, the overall number of publications has fluctuated constantly. The London University, the Copenhagen Business School and the London School of Economics were the institutions that produced the most articles in this topic. The three main categories of research that emerged from a network analysis based on the co-occurrence of keywords are innovation, outsourcing and performance.

Practical implications

A BP-innovation model must be created, and BPO must go beyond operational duties to incorporate management-wide shared strategic decisions in order to ensure improved performance of the firms. BPO enables a company's management to share knowledge and expertise about the strategic difficulties of outsourcing. A variety of technological and non-technological resources must also be considered when integrating an information technology (IT) infrastructure into BPO decisions in order to achieve greater performance.

Originality/value

Validity of the paper can be justified by it contribution to the existing knowledge. First, linking BPO and innovation – by integrating the arguments of various academics, the study unifies the disparate components and contentious discussions in the relationship between BPO and innovation. Second, this study highlights a research trend, significant studies, relevant terms and concepts in the real world. Third, the study provides future researchers with a tip for statistically analyzing BPO, particularly in light of innovation.

Details

Business Process Management Journal, vol. 30 no. 1
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 5 July 2021

Delshad Hoseini and Mohsen Shafiei Nikabadi

The purpose of this study is to achieve the dynamic model of outsourcing success factors in project-based companies.

Abstract

Purpose

The purpose of this study is to achieve the dynamic model of outsourcing success factors in project-based companies.

Design/methodology/approach

This study is descriptive-survey in terms of method and practical in terms of purpose. To achieve the dynamic model of outsourcing success, 1,000 outsourcing articles published in high-status journals from 2017 to 2019 were first text-mining. Then, using the clustering technique, the factors affecting the success of outsourcing were obtained. To achieve the key variables, the variables obtained by interpretive structural modeling (ISM) were then leveled. Then, the strategic options development and analysis (SODA) technique has been used to achieve a consensus and coordination on factors relationships. Finally, the dynamic model of outsourcing success in GHODRAT CONTROL PARS Company has been modeled and implemented.

Findings

In total, five clusters and nine factors were extracted (strategy, management, performance, market, R&D, supplier, product, organizational data and outsourcing findings). In central and domain analysis, two factors, “Strategy” and “R and D,” were recognized as factors that have the most interaction and centrality. The result of the dynamic model indicate that the organization will significantly reduce the construction time of the power plant by improving the “R and D” factor.

Originality/value

In this study, various techniques have been combined. Therefore, one of the aspects of innovation in the present study is the combination of methods that have not been used earlier. The second aspect of this study’s innovation is using SODA technique to design the dynamic model of outsourcing success factors. Given that the scope of this study is the component affecting the success of outsourcing, so extensive research has been conducted in the field of articles worked in the field of outsourcing to get a comprehensive view of the components affecting the success of outsourcing, which has not been reviewed in other articles. In this study, in addition to identifying the effective factors, their identified and also how these variables affect the successful performance of outsourcing in the form of a dynamic model, and then analyzed.

Details

Journal of Facilities Management , vol. 19 no. 5
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 1 September 2005

Chien Leachman, C. Carl Pegels and Seung Kyoon Shin

Many studies examine manufacturing performance along individual benchmarking dimensions. This study aims to develop a performance metric based on quality and output volume among…

6855

Abstract

Purpose

Many studies examine manufacturing performance along individual benchmarking dimensions. This study aims to develop a performance metric based on quality and output volume among other variables to assess a firm's manufacturing competitiveness in relation to its major rivals.

Design/methodology/approach

The relative manufacturing performance is measured by data envelopment analysis (DEA). Several key manufacturing practices are examined for their impact on performance. They are research and development (R&D) commitment, time compression during production, and degree of outsourcing. The results are based on a sample from the world automobile industry.

Findings

The empirical results suggest that a strong R&D commitment and ability to compress production time explain 37 percent of the manufacturing performance differences among major volume automobile producers. A nonlinear convex relationship is also found between outsourcing rate and manufacturing performance. The results show how the resulting performance ratings can then be utilized to assess the effects of a selected group of practices on manufacturing performance.

Research limitations/implications

Since, there is a common basis for the sources of competitiveness among industries, the findings derived from this study are probably transportable to other industries. Also, the proposed metric and analytic approaches are generic and thus can be broadly applied to other industries. The results also suggest the need for further analysis of where improvements can be made within a given company, according to its firm‐specific characteristics.

Originality/value

Examines manufacturing performance along individual benchmarking dimensions and develops a performance metric based on quality and output volume to assess a firm's manufacturing competitiveness in relation to its major rivals.

Details

International Journal of Operations & Production Management, vol. 25 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

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