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Research seminar with Professor Michael Mol
March 8, 2013 @ 12:00 pm - 1:15 pm
Michael Mol is a Professor of Strategic Management at Warwick Business School. His research interest are the strategic management of larger firms, especially management innovation, open innovation and outsourcing/offshoring strategies with a focus on how these phenomena occur and influence performance outcomes.
Michael Mol is a visiting professor at SMG from January 2013 to March 2013.
“Offshore and Domestic Subsidiary R&D Sourcing: Its Antecedents and Innovation Outcomes”
Other than through outsourcing and internal R&D businesses often rely on sourcing R&D inputs from other subsidiaries. We seek to understand under what conditions such subsidiary sourcing takes place and how it is related to innovation outcomes. We argue that subsidiary sourcing, especially when undertaken offshore, adds to the heterogeneity of knowledge inputs a business has available because of a larger cognitive distance. Furthermore, what constitutes a heterogeneous knowledge inputs depends on the recipient: For host subsidiaries offshore R&D sourcing provides less heterogeneity than for domestic units. More cognitively distant inputs add to a firm’s propensity to innovate, and therefore offshore subsidiary sourcing is most beneficial for domestic firms. But due to myopic search patterns foreign subsidiaries engage in offshore subsidiary R&D sourcing more, as do export intensive firms and firms near the border. This framework is only partially supported empirically in tests on a large number of businesses in France, as we find no differences between foreign and domestic firms.