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Contextual influences on international subsidiaries' product technology strategy

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  • Allred, Brent B.
  • Swan, K. Scott

Abstract

We seek to test a broad range of factors that influence the technology sourcing decision of international subsidiaries in acquiring product technology from outside the firm (i.e., outsourcing) versus internal development. A regression model, used to analyze data from 187 international subsidiaries in six industries and with parents based in 14 countries, identifies the environmental, strategic, configurational, and resource endowment factors that influence the technology sourcing decision. Specifically, the level of product dynamism in the subsidiary's industry and the distance between the subsidiary's primary marketing and R&D operations are associated with a greater reliance on outsourcing. A differentiation goal, a low-cost goal, along with the level of the subsidiary's human and financial resources are associated with a greater reliance on internal development.

Suggested Citation

  • Allred, Brent B. & Swan, K. Scott, 2004. "Contextual influences on international subsidiaries' product technology strategy," Journal of International Management, Elsevier, vol. 10(2), pages 259-286.
  • Handle: RePEc:eee:intman:v:10:y:2004:i:2:p:259-286
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    Cited by:

    1. Lewellyn, Krista B. & Bao, Shuji ‘Rosey’, 2015. "R&D Investment in the Global Paper Products Industry: A Behavioral Theory of the Firm and National Culture Perspective," Journal of International Management, Elsevier, vol. 21(1), pages 1-17.
    2. Šárka Zapletalová, 2016. "Competitive Strategies: A New Perspective on the Internationalization of the Czech Enterprises," Working Papers 0035, Silesian University, School of Business Administration.
    3. repec:spr:manint:v:49:y:2009:i:1:d:10.1007_s11575-008-0124-7 is not listed on IDEAS
    4. Ping Lv & Monica Plechero & Rakesh Basant, 2013. "International competitive strategy choices: comparing firms in China and India," Asia Pacific Business Review, Taylor & Francis Journals, vol. 19(4), pages 542-558, October.

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