How Do Different Motives for R&amp;D Investment in Foreign Locations Affect Domestic Firm Performance? An Analysis Based on Swiss Panel Micro Data

Arvanitis, Spyros; Hollenstein, Heinz

doi:10.2139/ssrn.1624851

Cited by 2 publications

(1 citation statement)

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“…The result for R&D outsourcing is quite in accordance with the findings of earlier studies about the positive effects of R&D investment in foreign locations (off-shoring of R&D) (see Arvanitis and Hollenstein 2007;2011). The positive effect of outsourcing of final products on productivity pointing out to a primarily cost-saving outsourcing strategy is in accordance with the results of recent studies about the effects of off-shoring of production to foreign locations such as Rumania, Bulgaria, etc.…”

Section: Productivity Equationssupporting

confidence: 90%

Outsourcing and Firm Performance – A Comparative Study of Swiss and Greek Firms

Arvanitis

Loukis

2011

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThis paper aims at analyzing (a) the factors determining the firms' propensity to outsource various processes (b) the impact of outsourcing on firms' innovation performance as well as labour productivity. The integral investigation of the determining factors as well as the impact of outsourcing on innovation and productivity based on the same data in a comparative setting is the new element this study adds to existing empirical literature. Relocation to external providers is related to (parts of) the production process of final products and intermediate products as well as Research and Development (R&D) and Information and Communication Technology (ICT) services.Key words: outsourcing; product innovation; process innovation; average labour productivity JEL Classification: L24; O31 3 IntroductionThe considerable reduction of transport costs, but more importantly, the development and rapid diffusion of information technologies in the last two decades have had large economic impacts through the transformation of work processes, organizational structures and modes of inter-firm as well intra-firm communication. In combination with the opening of markets at both national and global levels these technological advances led to new possibilities of trade of goods and particularly services that allowed firms to decrease their degree of integration, thus increase their ability to operate more flexibly under the conditions of considerably more intensive international competition. Outsourcing referring to the relocation of within-firm processes and functions to external providers either at home or abroad has been one of these flexibility strategies (Olsen 2006;Hesmati 2003). Given the relative importance of outsourcing as a major firm restructuring strategy in the last twenty years is of relevance to investigate both the causes and the consequences of outsourcing for firm economic performance.The contribution of the paper is threefold: (a) analysis of the factors determining the firms' propensity to outsource various processes and functions; (b) investigation of the impact of outsourcing on firms' innovation performance and (c) of the impact on labour productivity. The integral study of the determining factors as well as the impact of outsourcing on innovation and productivity based on the same data in a comparative setting is the new element this paper adds to existing empirical literature. Our comparative study refers...

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Section: Productivity Equationssupporting

confidence: 90%

Outsourcing and Firm Performance – A Comparative Study of Swiss and Greek Firms

Arvanitis

Loukis

2011

SSRN Journal

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Building R&D Capabilities Abroad and the Role of Reverse Knowledge Transfer in Explaining MNCs' Productivity

Hamida

2016

Handbook of Research on Comparative Economic Development Perspectives on Europe and the MENA Region

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Although MNCs are increasingly globalizing their R&D, we have an incomplete and inconsistent understanding of whether, and under what conditions, the knowledge accumulated from foreign R&D centers can improve the productivity of the parent firm. We address this issue by examining the factors that influence the extent to which reverse knowledge transfer (RKT) enhances the productivity of the MNC at home. Our contribution lies in showing that the productivity benefits of RKT depend on the idiosyncratic characteristics of MNCs' parent and R&D affiliates. We show that RKT has a stronger effect on the productivity of the parent MNC when foreign R&D units are charged with a knowledge seeking role. These effects further increase when R&D affiliates are well embedded in host countries. Surprisingly, the productivity enhancing effects of RKT do not differ across acquired and greenfield affiliates.

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How Do Different Motives for R&D Investment in Foreign Locations Affect Domestic Firm Performance? An Analysis Based on Swiss Panel Micro Data

Cited by 2 publications

References 40 publications

Outsourcing and Firm Performance – A Comparative Study of Swiss and Greek Firms

Outsourcing and Firm Performance – A Comparative Study of Swiss and Greek Firms

Building R&D Capabilities Abroad and the Role of Reverse Knowledge Transfer in Explaining MNCs' Productivity

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