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Governance decisions for the offshore outsourcing of new product development in technology intensive markets

Author

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  • Griffith, David A.
  • Harmancioglu, Nukhet
  • Droge, Cornelia

Abstract

This study addresses how buyers organize their offshore outsourcing new product development relationships. Building on transaction cost economics and resource dependence theories, we propose a model of the influence of key new product development offshore outsourcing factors on two important buyers' governance decisions (i.e., supply concentration and degree of supplier involvement). The antecedents, drawn from the marketing, management, and international business literatures, include: three sources of asset specificity (degree of modularity, strategic value of the project, and technology specificity) and two sources of uncertainty (cultural distance and technological discontinuity). The results, derived from an analysis of 200 offshore outsourcing new product development relationships, provide new insights for academics and practitioners.

Suggested Citation

  • Griffith, David A. & Harmancioglu, Nukhet & Droge, Cornelia, 2009. "Governance decisions for the offshore outsourcing of new product development in technology intensive markets," Journal of World Business, Elsevier, vol. 44(3), pages 217-224, July.
  • Handle: RePEc:eee:worbus:v:44:y:2009:i:3:p:217-224
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Xiaoqing Li & Yu Zheng & Catherine L. Wang, 2016. "Inter-firm collaboration in new product development in Chinese pharmaceutical companies," Asia Pacific Journal of Management, Springer, vol. 33(1), pages 165-193, March.
    2. Albertoni, Filippo & Elia, Stefano & Massini, Silvia & Piscitello, Lucia, 2017. "The reshoring of business services: Reaction to failure or persistent strategy?," Journal of World Business, Elsevier, vol. 52(3), pages 417-430.
    3. Martinez-Noya, Andrea & Garcia-Canal, Esteban & Guillen, Mauro F., 2012. "International R&D service outsourcing by technology-intensive firms: Whether and where?," Journal of International Management, Elsevier, vol. 18(1), pages 18-37.
    4. Hitt, Michael A. & Li, Dan & Xu, Kai, 2016. "International strategy: From local to global and beyond," Journal of World Business, Elsevier, vol. 51(1), pages 58-73.
    5. repec:pal:jintbs:v:49:y:2018:i:3:d:10.1057_s41267-017-0115-7 is not listed on IDEAS
    6. Athreye, Suma & Batsakis, Georgios & Singh, Satwinder, 2016. "Local, global, and internal knowledge sourcing: The trilemma of foreign-based R&D subsidiaries," Journal of Business Research, Elsevier, vol. 69(12), pages 5694-5702.
    7. George O. White & Orhun Guldiken & Thomas A. Hemphill & Wu He & Mehdi Sharifi Khoobdeh, 2016. "Trends in International Strategic Management Research From 2000 to 2013: Text Mining and Bibliometric Analyses," Management International Review, Springer, vol. 56(1), pages 35-65, February.
    8. Steven Dahlquist & David Griffith, 2015. "A framework for the formation of governance portfolios in international interfirm marketing collaborations," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 5(1), pages 45-59, June.
    9. repec:spr:amsrev:v:5:y:2015:i:1:d:10.1007_s13162-015-0065-9 is not listed on IDEAS
    10. Schmeisser, Bjoern, 2013. "A Systematic Review of Literature on Offshoring of Value Chain Activities," Journal of International Management, Elsevier, vol. 19(4), pages 390-406.

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