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Exploring the Determinants of Location Choice Decisions for Offshored R&D Projects

Rodgers, Peter, Khan, Zaheer, Tarba, Shlomo, Nurgabdeshov, Assylbek (2017) Exploring the Determinants of Location Choice Decisions for Offshored R&D Projects. Journal of Business Research, 103 . pp. 472-483. ISSN 0148-2963. (doi:10.1016/j.jbusres.2017.11.009) (KAR id:64297)

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Official URL
https://doi.org/10.1016/j.jbusres.2017.11.009

Abstract

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 modeling, 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.

Item Type: Article
DOI/Identification number: 10.1016/j.jbusres.2017.11.009
Uncontrolled keywords: offshoring, R&D, MNEs, location choice, determinant factors, micro-level factors
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Marketing, Entrepreneurship and International Business
Depositing User: Zaheer Khan
Date Deposited: 07 Nov 2017 14:16 UTC
Last Modified: 11 Oct 2021 09:05 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/64297 (The current URI for this page, for reference purposes)
Khan, Zaheer: https://orcid.org/0000-0001-5538-3123
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