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NTU Management Review
Vol. 33 No. 1 Apr. 2023, 39-84
DOI:10.6226/NTUMR.202304_33(1).0002
Value Creation and Capture in Developing Countries: The
Driver and Mechanism of Offshore Outsourcing Innovation
在開發中國家之價值創造與攫取:境外創新外包之驅動因
素與管理機制
Tung M. Hung, Department of Business Administration, National Taiwan University of Science &
Technology
洪東敏 / 國立臺灣科技大學企業管理學系
Yi-Ju Lo, School of Management, Yuan Ze University
羅憶如 / 元智大學管理學院
Received 2021/9, Final revision received 2022/5
Abstract
As firms have been increasingly outsourcing innovation activities in developing countries
where the firms confront challenges of creating and capturing value due to weak
protection of Intellectual Property Rights (IPR), the answers to why these firms still
take the risk and how they manage it remain unclear. To bridge the knowledge gap, we
adopt the Knowledge-based View (KBV) to conduct the research on offshore outsourcing
innovation. We argue that the availability of human capital, in terms of low-cost and
high-skilled talent, in a country with weak IPR protection increases the likelihood that
a firm outsources an innovation activity to that country. In addition, we further propose
that the main effect of human capital can be positively moderated by the designing of
task specificity and project modularity which the firm uses to capture value and protect
proprietary information from outsourcing innovation in developing countries. Using the
data of Offshoring Research Network (ORN), Index of Economic Freedom (IEF), and
World Economic Forum (WEF) to test these hypotheses, we find our premises supported.
【Keywords】offshore outsourcing innovation, task specificity, project modularity, human
capital, developing countries
領域主編:陳忠仁教授
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