The Impact of Innovation Off-shoring on Organizational Adaptability
نویسندگان
چکیده
We analyze the effects of captive off-shoring of innovation activities on the firms’ ability to adapt their organizational processes and structures. Starting from complexity theory, we use three consecutive waves of the German part of the Community Innovation Survey to test our hypotheses. We find an inverted u-shape of innovation off-shoring on the effectiveness of organizational adaptability, implying an optimal threshold value of innovation off-shoring. This value is 11% for share of off-shored R&D, 15% for downstream innovation activities such as local market adaptation, and 34% for design activities. We also analyze several contingency variables. In particular we show that the costs of innovation off-shoring in terms of reduced organizational adaptability are exacerbated by a strong focus on R&D and a strong embeddedness in on-shore networks. Smaller firms find it easier to deal with the management complexity induced by geographical dispersion of innovation activities because of their greater flexibility.
منابع مشابه
Organizational process alignment, culture and innovation
This study explores the relationships between organizational process alignment, culture and innovation. Based on previous studies, this study proposed a conceptual model and hypothesized that three kinds of process alignments (structural, information technology (IT) and strategic alignments) positively affect adaptability culture, which in turn facilitate process and product innovations. Using ...
متن کاملThe impact of organizational innovation through innovation capabilities in process and product on the performance of manufacturing firms
Abstract Innovation is considered as a critical factor for organizations to create value and sustainable competitive advantage in today's complex and changing environment. Organizations with more innovation, in response to the changing environments and creating development of new capabilities that allows them to achieve better performance will be more successful. The aim of curr...
متن کاملLeveraging Offshoring for Innovative Capability and Organizational Flexibility
Within the realm of globalization of R&D, offshoring is a relatively recent and still emerging phenomenon. Rooted in the notion of comparative advantage, offshoring of R&D involves disaggregation and global distribution of the firm’s R&D value chain activities to leverage innovation capacity of low-cost countries. Characteristically different from marketand technology-seeking globalization of R...
متن کاملThe Impact of Transformational Leadership on Organizational Innovation: A Study of the National Iranian Gas Company
This paper aims to investigate the effect of transformational leadership on organizational innovation among line and senior managers of national Iranian gas company. This study is practical in terms of the objective, descriptive survey in terms of gathering data procedure and finally quantitative with regards to the gathered data. Our research population contains all of the line and senior mana...
متن کاملSurveying the Impact of New Information Technologies on Improving Customer Relation Management considering Organizational Innovation as intervening variable (Case study: Bank Mellat of West Azerbaijan)
The aim of the present study is to Surveying the Impact of New Information Technologies on Improving Customer Relation Management considering Organizational Innovation as intervening variable (Case study: Bank Mellat of West Azerbaijan). The study is applied and descriptive in nature. All of the employee in Bank Mellat of West Azerbaijan branches were candidiate to participate in the study but ...
متن کامل