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The Relationship Between Offshore Sourcing and Innovativeness of U.S. Multinational Firms: An Empirical Investigation

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Abstract

In increasingly complex global competition, U.S. multinational firms have stepped up imports under items 806.30 and 807.00 of the Tariff Schedules of the United States as a part of offshore sourcing of components and finished products to serve the U.S. market.

The literature offers two opposing views of the impact of U.S. firms' 806/807 imports on their innovative ability. At the current level of knowledge, mostly conceptual or anecdotal, the literature fails to present any empirical evidence as to whether such offshore sourcing by U.S. firms will indeed stifle or complement their innovative ability. This study attempts to fill this void by empirically examining this issue at the industry level.

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*Masaaki Kotabe is Assistant Professor of Marketing and International Business at the University of Texas at Austin. His major research interests include global sourcing, competitive strategy, and technology issues. Professor Kotabe's previous work has appeared in such journals as Journal of International Business Studies, Columbia Journal of World Business, Journal of Marketing, Journal of Business Research and International Marketing Review.

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Kotabe, M. The Relationship Between Offshore Sourcing and Innovativeness of U.S. Multinational Firms: An Empirical Investigation. J Int Bus Stud 21, 623–638 (1990). https://doi.org/10.1057/palgrave.jibs.8490344

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  • DOI: https://doi.org/10.1057/palgrave.jibs.8490344

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