R&D Outsourcing in Information Technology Organisations: Effects on Costs, Profits, and Technological Capability

Because of the budgetary constraints, an increasing number of organizations have taken the decision to outsource their R&D activities to external outsourcing contractors. However, relevant literature continues to debate on whether or not R&D outsourcing can improve organizations’ finan...

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Bibliographic Details
Main Authors: Huang, Y., Chung, H., Lin, Chad
Other Authors: Khalid S. Soliman
Format: Conference Paper
Published: International Business Information Management Association (IBIMA) 2005
Online Access:http://www.ibima.org/Lisbon2005/index.html
http://hdl.handle.net/20.500.11937/14025
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author Huang, Y.
Chung, H.
Lin, Chad
author2 Khalid S. Soliman
author_facet Khalid S. Soliman
Huang, Y.
Chung, H.
Lin, Chad
author_sort Huang, Y.
building Curtin Institutional Repository
collection Online Access
description Because of the budgetary constraints, an increasing number of organizations have taken the decision to outsource their R&D activities to external outsourcing contractors. However, relevant literature continues to debate on whether or not R&D outsourcing can improve organizations’ financial performance. Therefore, this study aims to study how different sourcing strategies during new product development process influence development cost, financial profit and technological capability. The results from 121 Taiwanese IT firms indicate that R&D outsourcing is more effective in terms of both financial benefits and technological capabilities gained when products are developed under radical product innovation. The results also indicate that R&D outsourcing should be treated as complementary to in-house R&D. Research and managerial implications are also discussed.
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institution Curtin University Malaysia
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publishDate 2005
publisher International Business Information Management Association (IBIMA)
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spelling curtin-20.500.11937-140252017-02-28T01:26:45Z R&D Outsourcing in Information Technology Organisations: Effects on Costs, Profits, and Technological Capability Huang, Y. Chung, H. Lin, Chad Khalid S. Soliman Because of the budgetary constraints, an increasing number of organizations have taken the decision to outsource their R&D activities to external outsourcing contractors. However, relevant literature continues to debate on whether or not R&D outsourcing can improve organizations’ financial performance. Therefore, this study aims to study how different sourcing strategies during new product development process influence development cost, financial profit and technological capability. The results from 121 Taiwanese IT firms indicate that R&D outsourcing is more effective in terms of both financial benefits and technological capabilities gained when products are developed under radical product innovation. The results also indicate that R&D outsourcing should be treated as complementary to in-house R&D. Research and managerial implications are also discussed. 2005 Conference Paper http://hdl.handle.net/20.500.11937/14025 http://www.ibima.org/Lisbon2005/index.html International Business Information Management Association (IBIMA) restricted
spellingShingle Huang, Y.
Chung, H.
Lin, Chad
R&D Outsourcing in Information Technology Organisations: Effects on Costs, Profits, and Technological Capability
title R&D Outsourcing in Information Technology Organisations: Effects on Costs, Profits, and Technological Capability
title_full R&D Outsourcing in Information Technology Organisations: Effects on Costs, Profits, and Technological Capability
title_fullStr R&D Outsourcing in Information Technology Organisations: Effects on Costs, Profits, and Technological Capability
title_full_unstemmed R&D Outsourcing in Information Technology Organisations: Effects on Costs, Profits, and Technological Capability
title_short R&D Outsourcing in Information Technology Organisations: Effects on Costs, Profits, and Technological Capability
title_sort r&d outsourcing in information technology organisations: effects on costs, profits, and technological capability
url http://www.ibima.org/Lisbon2005/index.html
http://hdl.handle.net/20.500.11937/14025