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Value Creation and Capture in Developing Countries: The Driver and Mechanism of Offshore Outsourcing
Innovation

Table 1 The Research Summary of Offshore Outsourcing Innovation
Emphasis Literature Main Findings
 Howells et al.  Costs and time are important reasons for firms to outsource
(2008) R&D.
 Kapler and  Offshore outsourcing offers an opportunity for the
Cost Puhala (2011) pharmaceutical industry to reduce costs in developing countries.
advantages
 Teirlinck and  Research collaboration and R&D outsourcing allow firms to
Spithoven (2013) exploit economies of scale and scope in both research and
development, thereby reducing innovation costs.
 Grimpe and  There is an inverse U-shaped relationship between R&D
Kaiser (2010) outsourcing and innovation performance.
 Nieto and  The offshoring of knowledge services benefits firms from
Innovation Rodríguez (2011) location-specific and specialization advantages to improve
outcomes innovation performance.
 Bertrand and Mol  Offshore outsourcing leads to more positive innovation
(2013) outcomes.
 Lu et al. (2008)  Institutions impose rules for legitimacy, serve as a source
of knowledge, and allocate incentives and resources for
innovation.
 Martínez-Noya et  Technological and international expertise are required in order
al. (2012) to outsource R&D in developing economies.

 Sartor and  Informal institutions influence an MNE’s strategy of offshoring
Institutional Beamish (2014) innovation in emerging markets.
contexts
 Buss and Peukert  Firms must address value appropriation hazards when
(2015) conducting R&D outsourcing.
 Martínez-Noya  Sharing R&D suppliers with competitors results into the
and García- disadvantages in countries with weak IPR protection.
Canal (2018)
 Bruno et al.  MNE innovative performance will be enhanced when the firm’s
(2021) R&D activities are based in locations where IPR protection is
stronger.
 Maskell et al.  Offshore outsourcing of a corporation goes through a sequence
(2007) of stages towards sourcing for knowledge and innovation.
 Chen et al.  An offshoring model concentrates on absorbing the particular
(2013) knowledge from an external source and applying it into a belief
system.
 Berry and Kaul  High-performing firms seek to develop new capabilities by
(2015) tapping into foreign knowledge.
Knowledge  Asmussen et al.  Firms acquire and accumulate architectural knowledge to
management (2016) accommodate for the added coordination requirements
associated with offshoring.
 Rodgers et al.  The offshoring of R&D activities can provide MNEs with unique
(2019) competitive advantages and access to foreign knowledge
resources.
 Grant  Fragmenting the value chain can take account of local expertise
and Phene (2022) and integrate globally distributed knowledge to develop global
new products that require accessing local knowledge.

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