Description
TitleUncertainty, complexity, and appropriability of cross-border innovation
Date Created2020
Other Date2020-05 (degree)
Extent1 online resource (ix, 138 pages)
DescriptionConducting innovation activities across national borders, firms face political, social, economic, financial, technological, or demand uncertainties. To manage the costs stemming from uncertainties in foreign countries, the conventional wisdom of transaction cost economics suggests that firms should internalize the practice of cross-border innovation to substitute the external hazards. However, many firms do outsource innovation activities to independent contract providers in countries with high uncertainty. Why? To resolve this paradox, I draw upon the theory of real options, the perspective of appropriable rents, and the literature of international expansion. I argue that firms use outsourcing as an option to incrementally invest in cross-border innovation and capture the value of a growth option through learning by outsourcing under uncertainty. In addition, firms could develop the architecture of system-specific outsourcing to secure their entrances to countries with high uncertainty. Moreover, firms benefit from expanding cross-border innovation along with an implementation of a global strategy in a long run. My premises are validated by testing a unique dataset from the Corporate Client Survey of Offshoring Research Network, the International Country Risk Guide, the Index of Economic Freedom, the Patent Protection Index, and the Special 301 reports by the United States Trade Representative.
NotePh.D.
NoteIncludes bibliographical references
Genretheses, ETD doctoral
LanguageEnglish
CollectionGraduate School - Newark Electronic Theses and Dissertations
Organization NameRutgers, The State University of New Jersey
RightsThe author owns the copyright to this work.
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