The Influence of Political Capabilities and Diplomatic Relations on Innovation Offshoring

Omar El Nayal, Joao Albino Pimentel, Pierre Dussauge

Publikation: Bidrag til bog/antologi/rapportKonferenceabstrakt i proceedingsForskningpeer review


Firms can derive significant benefits from locating innovation activities in foreign countries. Yet, such offshoring of innovation activities comes with notable downsides, particularly the risk of innovation misappropriation in host countries with weak intellectual property rights (IPR) regimes. Although prior research has focused on how firms attempt to manage this downside risk through innovation-specific remedies and knowledge protection strategies, the role of firm nonmarket capabilities, notably political capabilities, has thus far been largely overlooked. We argue that firm political capabilities can help protect firms from the possible misappropriation of their intangible resources in weak IPR regimes, but that this effect will only materialize when a firm’s home and host countries maintain favorable diplomatic relationships. Our theorizing thus considers multiple levels of political influence that affect a firm’s ability to overcome the risks associated with weak IPR regimes. We find support for our predictions in a sample of 479 innovation offshoring investments made by 102 firms from 12 home countries over the period 2003-2010."
TitelProceedings of the Eightieth Annual Meeting of the Academy of Management
RedaktørerGuclu Atinc
Antal sider1
UdgivelsesstedBriarcliff Manor, NY
ForlagAcademy of Management
StatusUdgivet - 2020
BegivenhedThe Academy of Management Annual Meeting 2020: Broadening Our Sight - Virtual
Varighed: 7 aug. 202011 aug. 2020
Konferencens nummer: 80


KonferenceThe Academy of Management Annual Meeting 2020
NavnAcademy of Management Proceedings