Contextual influences on international subsidiaries' product technology strategy |
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| Institution: | 1. Department of Radiology, Virginia Mason Medical Center, Seattle, WA;2. Department of Radiology, University of Missouri-Kansas City, Kansas City, MO;3. Department of Pulmonary Medicine, MD Anderson Cancer Center, Houston, TX;4. Department of Radiology, University of Wisconsin School of Medicine and Public Health, Madison, WI;1. Instituto de Investigaciones Filosóficas, Universidad Nacional Autónoma de México, Mexico City, Mexico;2. Instituto de Ciencias Nucleares, Universidad Nacional Autónoma de México, Mexico City, Mexico |
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| Abstract: | We seek to test a broad range of factors that influence the technology sourcing decision of international subsidiaries in acquiring product technology from outside the firm (i.e., outsourcing) versus internal development. A regression model, used to analyze data from 187 international subsidiaries in six industries and with parents based in 14 countries, identifies the environmental, strategic, configurational, and resource endowment factors that influence the technology sourcing decision. Specifically, the level of product dynamism in the subsidiary's industry and the distance between the subsidiary's primary marketing and R&D operations are associated with a greater reliance on outsourcing. A differentiation goal, a low-cost goal, along with the level of the subsidiary's human and financial resources are associated with a greater reliance on internal development. |
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