TY - JOUR
T1 - Exploring the determinants of location choice decisions of offshored R&D projects
AU - Rodgers, Peter
AU - Khan, Zaheer
AU - Tarba, Shlomo
AU - Nurgabdeshov, Assylbek
AU - Ahammad, Mohammad F.
N1 - Publisher Copyright:
© 2017 Elsevier Inc.
PY - 2019/10
Y1 - 2019/10
N2 - This article extends the understanding of R&D offshoring with a particular micro-level focus on the determinants of location choice decisions for R&D activities at the project level. Using multinomial logistic regression, supplemented with PLS modelling, the article adopts an innovative R&D project-level approach to examine the key determinants of the location choice decisions made by 126 UK-based MNEs. The findings demonstrate that project characteristics—such as speed, quality, interactivity, innovativeness, and routineness—have a greater impact on location choice decisions than traditional considerations such as cost and wage, which have been extensively examined. We further find that the classification of R&D projects is not one of the key determinants of R&D project location-related decisions. Theoretically, the article uses an approach proposed by Demirbag and Glaister (2010), combined with Dunning's OLI framework, to highlight the scope for utilizing integrated theoretical frameworks to investigate location choice decisions for R&D offshoring within IB studies. We draw implications for research and practice.
AB - This article extends the understanding of R&D offshoring with a particular micro-level focus on the determinants of location choice decisions for R&D activities at the project level. Using multinomial logistic regression, supplemented with PLS modelling, the article adopts an innovative R&D project-level approach to examine the key determinants of the location choice decisions made by 126 UK-based MNEs. The findings demonstrate that project characteristics—such as speed, quality, interactivity, innovativeness, and routineness—have a greater impact on location choice decisions than traditional considerations such as cost and wage, which have been extensively examined. We further find that the classification of R&D projects is not one of the key determinants of R&D project location-related decisions. Theoretically, the article uses an approach proposed by Demirbag and Glaister (2010), combined with Dunning's OLI framework, to highlight the scope for utilizing integrated theoretical frameworks to investigate location choice decisions for R&D offshoring within IB studies. We draw implications for research and practice.
KW - Determinant factors
KW - Location choice
KW - Micro-level factors
KW - MNEs
KW - Offshoring
KW - R&D
UR - http://www.scopus.com/inward/record.url?scp=85033568506&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2017.11.009
DO - 10.1016/j.jbusres.2017.11.009
M3 - Article
AN - SCOPUS:85033568506
SN - 0148-2963
VL - 103
SP - 472
EP - 483
JO - Journal of Business Research
JF - Journal of Business Research
ER -