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Organizational design mechanisms for the R&D function in a world of offshoring

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  • Andersson, Ulf
  • Pedersen, Torben

Abstract

Summary Later years' globalization and increased competition has forced firms to re-evaluate their current configuration and location of activities. An emerging shortage of talent and a recognition of knowledge sources far more spread around the globe have induced firms to re-think their configuration of knowledge-intensive activities, such as R&D. Disaggregation and dispersion of activities is though a double edged sword as it simultaneously enhances the access to resources and talent increasing the value of knowledge development activities in the firm, but also add to the costs of management and coordination. In this article we discuss how designing the configuration of R&D activities and the utilization of organizational coordination and control mechanisms help firms to stay on top of the costs induced by inter-task interdependencies among the disaggregated R&D activities and thereby leveraging the knowledge and capabilities developed in the offshored activities. We utilize the Danish wind mill company Vestas as an empirical example to illustrate our discussion.

Suggested Citation

  • Andersson, Ulf & Pedersen, Torben, 2010. "Organizational design mechanisms for the R&D function in a world of offshoring," Scandinavian Journal of Management, Elsevier, vol. 26(4), pages 431-438, December.
  • Handle: RePEc:eee:scaman:v:26:y:2010:i:4:p:431-438
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    Cited by:

    1. Mukherjee, Debmalya & Gaur, Ajai S. & Datta, Avimanyu, 2013. "Creating value through offshore outsourcing: An integrative framework," Journal of International Management, Elsevier, vol. 19(4), pages 377-389.
    2. Schmid, Stefan & Grosche, Philipp & Mayrhofer, Ulrike, 2016. "Configuration and coordination of international marketing activities," International Business Review, Elsevier, vol. 25(2), pages 535-547.
    3. Godfrey Mugurusi & Lydia Bals, 2017. "A processual analysis of the purchasing and supply organization in transition: the impact of offshoring," Operations Management Research, Springer, vol. 10(1), pages 64-83, June.
    4. Ceci, Federica & Prencipe, Andrea, 2013. "Does Distance Hinder Coordination? Identifying and Bridging Boundaries of Offshored Work," Journal of International Management, Elsevier, vol. 19(4), pages 324-332.
    5. Tippmann, Esther & Sharkey Scott, Pamela & Reilly, Marty & O’Brien, Donal, 2018. "Subsidiary coopetition competence: Navigating subsidiary evolution in the multinational corporation," Journal of World Business, Elsevier, vol. 53(4), pages 540-554.
    6. Hung, Tung Min & Contractor, Farok & Lo, Yi-Ju, 2022. "Manage the value and liability of offshoring innovation," International Business Review, Elsevier, vol. 31(2).
    7. Asimakopoulos, Grigorios & Revilla, Antonio & Rodríguez, Alicia, 2023. "International R&D sourcing, innovation and firm age: The advantage of ‘born-international sourcers’," Technovation, Elsevier, vol. 122(C).
    8. Liu, Yang & Liang, Xingkun & Shi, Yongjiang, 2018. "Brokerage and balance: Creating an effective organizational interface for product modularization in multinational R&D," Research Policy, Elsevier, vol. 47(6), pages 1133-1146.
    9. repec:hig:wpaper:38man2015 is not listed on IDEAS

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