Innovation Offshoring, Institutional Context and Innovation Performance: A Meta‐Analysis

31 Pages Posted: 14 Dec 2018

See all articles by Nina Rosenbusch

Nina Rosenbusch

Wilfrid Laurier University

Michael Gusenbauer

Johannes Kepler University

Isabella Hatak

University of St. Gallen

Matthias Fink

University of Twente

Klaus E. Meyer

China Europe International Business School (CEIBS); Copenhagen Business School - Center for East European Studies (CEES)

Date Written: January 2019

Abstract

Innovation offshoring (IO) has become a widespread management practice. Yet, evidence on the performance implications is inconsistent, and scattered across disciplines and contexts. We argue that the benefits firms can derive from IO depend on the institutional environment at home. Drawing on recent work on institutional theory in international business, we explore institutions that facilitate reverse knowledge transfer and/or institutional arbitrage with respect to innovation‐related activities. The results of our meta‐analysis that synthesizes evidence from 48 samples show that IO is related positively to innovation performance. As predicted, this relationship is moderated by differences in the institutional environments across countries. Specifically, when national innovation systems are weak at home, IO appears to enable institutional arbitrage strategy whereas Confucian cultures enable more effective reverse knowledge transfer. However, contrary to our expectations, the beneficial effects of IO appear to have diminished over time.

Keywords: innovation offshoring, innovation performance, institutional arbitrage, institutional theory, meta‐analysis

Suggested Citation

Rosenbusch, Nina and Gusenbauer, Michael and Hatak, Isabella and Fink, Matthias and Meyer, Klaus E., Innovation Offshoring, Institutional Context and Innovation Performance: A Meta‐Analysis (January 2019). Journal of Management Studies, Vol. 56, Issue 1, pp. 203-233, 2019. Available at SSRN: https://ssrn.com/abstract=3300989 or http://dx.doi.org/10.1111/joms.12407

Nina Rosenbusch (Contact Author)

Wilfrid Laurier University

Michael Gusenbauer

Johannes Kepler University

Linz
Austria

Isabella Hatak

University of St. Gallen

Langgasse 1
St. Gallen, 9008
Switzerland

Matthias Fink

University of Twente

Postbus 217
Twente
Netherlands

Klaus E. Meyer

China Europe International Business School (CEIBS) ( email )

Shanghai-Hongfeng Road
Shanghai 201206
Shanghai 201206
China

HOME PAGE: http://www.ceibs.edu/faculty/facultylist/09/100132.shtml

Copenhagen Business School - Center for East European Studies (CEES) ( email )

Porcelanshaven 24
2000 Frederiksberg
Denmark

HOME PAGE: http://www.klausmeyer.co.uk

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