Balancing Internal and External Knowledge Acquisition: The Gains and Pains from R&amp;D Outsourcing

Grimpe, Christoph; Kaiser, Ulrich

doi:10.1111/j.1467-6486.2010.00946.x

Cited by 448 publications

(469 citation statements)

References 102 publications

Supporting

Mentioning

436

Contrasting

Unclassified

Order By: Relevance

“…Innovation Intensity (log), Firm Size (log) and Share of Graduates all have a positive effect on New Product Sales (log). These findings are consistent with recent CIS studies (Klingebiel and Rammer, 2014;Grimpe and Kaiser, 2010;Laursen and Salter, 2006;Leiponen and Helfat, 2010). Firms that belong to a Group and that have more Projects have higher New Product Sales (log).…”

Section: Resultssupporting

confidence: 82%

Staging Innovation Projects: (When) Does it Pay Off?

Andries

Hünermund

2014

SSRN Journal

View full text Add to dashboard Cite

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Staging innovation projects: (When) does it pay off ?Petra Andries * † Paul Hünermund † ‡ November 2014Building on real options literature, this study shows that the use of a staged approach for the management of innovation projects affects the innovation output of firms differently depending on firm characteristics and ambitions. In particular, while staged project management increases the effect of innovation expenditures on new product sales for firms envisaging incremental or continuous innovations, this moderating effect is absent for firms aspiring radical innovations. In addition, while staged project management has a positive moderating effect in firms with resource slack, this is not the case when firms are resource-constrained. We further investigate the underlying mechanisms to this latter finding by demonstrating that in resource-abundant firms staged project organization is associated with delaying projects until more information becomes available. Thereby these firms reap the waiting value inherent to real options reasoning. By contrast, resource-constrained firms using staged project management are shown to abandon a larger share of their innovation projects and to concentrate resources on fewer projects. It appears, however, that, due to budgetary pressure, they make the decision to abandon at a too early stage where uncertainty is insufficiently resolved. This can explain why there is no effect of staged project management on the sales of resource-constrained firms from new products. The paper contributes to theory development on when and why the staging of innovation projects affects the innovation output of firms and to the literature on real options reasoning in general.

show abstract

Section: Resultssupporting

confidence: 82%

Staging Innovation Projects: (When) Does it Pay Off?

Andries

Hünermund

2014

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…Expanding the search beyond a threshold may result in "over-searching" (March 1991;Katila and Ahuja 2002;Laursen andSalter 2006, Grimpe andKaiser 2010). Similar reasoning may hold for collaboration.…”

Section: Introductionmentioning

confidence: 95%

R&D Partnerships and Innovation Performance: Can There Be Too Much of a Good Thing?

Hottenrott

Lopes-Bento

2014

SSRN Journal

View full text Add to dashboard Cite

R&D collaboration facilitates the pooling of complementary skills, learning from the partner as well as the sharing of risks and costs. Research therefore repeatedly stresses the positive relationship between collaborative R&D and innovation performance. Fewer studies address the potential drawbacks of collaborative R&D. Collaborative R&D comes at the cost of coordination and monitoring, requires knowledge disclosure and involves the risk of opportunistic behavior by the partners. Thus, while for lower collaboration intensities the net gains can be high, costs may start to outweigh benefits if firms perform a higher share of their innovation projects collaboratively. For a sample of 2,735 firms located in Germany and active in a broad range of manufacturing and service sectors, this study finds that increasing the share of collaborative R&D projects in total R&D projects is associated with a higher probability of product innovation and with a higher market success of new products. While this confirms previous findings on the gains for innovation performance, we also observe that collaboration has decreasing and even negative returns on product innovation if its intensity increases above a certain threshold. Thus, the relationship between collaboration intensity and innovation follows an inverted-U shape and, on average, costs start to outweigh benefits if a firm pursues more than about two-thirds of its R&D projects in collaboration. This result is robust to conditioning market success to the introduction of new products and to accounting for the selection into collaborating. This threshold is, however, contingent on firm characteristics. Smaller and younger as well as resource constrained firms benefit from relatively higher collaboration intensities. For firms with higher collaboration complexities in terms of different partners and different stages of the R&D process at which collaboration takes place, returns start to decrease already at lower collaboration intensities.

show abstract

“…Value" appropriation" risks" are" particularly" critical" for" outsourcing," compared" to" other" forms"of"inter=firm"relationship"(e.g.,"alliance),"simply"because"of"the"relinquishment"of"the"control"of" assets" and" the" opportunism" in" arm's" length" relationships." Exchange" hazards" (i.e.," asset=specific" and" environmental" uncertainty)" are" detrimental" to" market" efficiency" because" they" lead" to" increasingly" complex" contractual" relationships" and," hence," increase" ex=post" transaction" costs" (Barthelemy" and" Quelin,"2006;"Grimpe"and"Kaiser,"2010;"Williamson,"1991). "Verwaal"et"al.…”

Section: 2!value(appropriation(capability(of(outsourcing(contracts(mentioning

confidence: 99%

Examining Managerial Preferences and Choices: The Role of Value Creation and Value Appropriation Drivers in Strategic Outsourcing

Lin¹,

Devinney²,

Holcomb³

2016

Long Range Planning

View full text Add to dashboard Cite

Balancing Internal and External Knowledge Acquisition: The Gains and Pains from R&D Outsourcing

Cited by 448 publications

References 102 publications

Staging Innovation Projects: (When) Does it Pay Off?

Staging Innovation Projects: (When) Does it Pay Off?

R&D Partnerships and Innovation Performance: Can There Be Too Much of a Good Thing?

Examining Managerial Preferences and Choices: The Role of Value Creation and Value Appropriation Drivers in Strategic Outsourcing

Contact Info

Product

Resources

About