Transaction costs theory and coordinated safeguards investment in R&D offshoring

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11 Citations (Scopus)

Abstract

In a multi-case study of R&D offshoring relationships in large manufacturing firms, this study develops an alternative view to that of transaction-cost theory, which argues that safeguard investments during the transition lead to higher transaction costs. This study outlines how fear of opportunism and the potential to violate agreements drive the need for complex safeguard devices. Results show that the sample firms benefit from high initial coordinated safeguard investments, because those investments reduce transactional costs overtime. More specifically, the study lists critical activities of such coordinated self-enforcing safeguard investments and calls for future attention to how firms manage transaction costs in R&D offshoring to secure long-term value.
Original languageEnglish
Peer-reviewed scientific journalJournal of Business Research
Volume69
Issue number5
Pages (from-to)1823-1828
ISSN0148-2963
DOIs
Publication statusPublished - 2016
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management

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