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How Firms Build Isolating Mechanisms for Knowledge: A Study in Offshore Research and Development Captives

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  • Kannan Srikanth

    (Fisher College of Business, Management and Human Resources, The Ohio State University, Columbus, Ohio 43210; Centre for Leadership and Management Practice, Indian School of Business, Gachibowli, Hyderabad, Telangana 500111, India)

  • Anand Nandkumar

    (Indian School of Business, Gachibowli, Hyderabad, Telangana 500111, India)

  • Deepa Mani

    (Indian School of Business, Gachibowli, Hyderabad, Telangana 500111, India)

  • Prashant Kale

    (Jones Graduate School of Business, Rice University, Houston, Texas 77252)

Abstract

Understanding how firms protect their knowledge from leakage is becoming increasingly important, especially when knowledge is not well protected by legal mechanisms such as patents. The rapid rise in research and development (R&D) activities taking place in offshore locations that only offer weak legal protection for intellectual property provides the ideal context to study this question. Using interview and survey data from captive R&D centers of multinational firms in India, we (1) identify five organizational practices that firms use to protect their knowledge from leaking to competitors in offshore locations, (2) consider whether these practices limit knowledge leakage or limit damage from leaked knowledge, and (3) explore whether they are complements or substitutes.

Suggested Citation

  • Kannan Srikanth & Anand Nandkumar & Deepa Mani & Prashant Kale, 2020. "How Firms Build Isolating Mechanisms for Knowledge: A Study in Offshore Research and Development Captives," Strategy Science, INFORMS, vol. 5(2), pages 98-116, June.
    • Handle: RePEc:inm:orstsc:v:5:y:2020:i:2:p:98-116
    DOI: 10.1287/stsc.2020.0101
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