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The antecedents and innovation effects of domestic and offshore R&D outsourcing: The contingent impact of cognitive distance and absorptive capacity

Authors

  • Olivier Bertrand,

    1. SKEMA Business School, Sophia Antipolis, France, and Graduate School of Management of St. Petersburg University, St. Petersburg, Russia
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  • Michael J. Mol

    Corresponding author
    1. Warwick Business School, University of Warwick, Coventry, United Kingdom
    • Correspondence to: Michael J. Mol, Warwick Business School, University of Warwick, Coventry, CV4 7AL United Kingdom. E-mail: michael.mol@wbs.ac.uk

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Abstract

This paper analyzes differences in the antecedents and performance consequences of domestic and offshore R&D outsourcing. Offshore outsourcing is characterized by larger cognitive distance. We find that absorptive capacity from internal R&D allows for more offshore outsourcing and that offshore outsourcing leads to more positive innovation outcomes, especially product innovation.

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