Exploring the interaction between R&D and production in their globalisation

Abstract

Purpose – The purpose of this paper is to extend the discussions on globalisation from production to R&D. It investigates how R&D and production interact with each other in their globalisation processes. Design/methodology/approach – The research aim is developed by identifying the gaps in the reviewed literature. This paper is based on four case studies undertaken in one Chinese manufacturing, one Danish pharmaceutical and two Danish manufacturing companies. The cases provide a sound basis for developing an understanding of the interaction between the globalisation of R&D and production. Findings – This paper identifies three approaches the case companies followed to globalise their production and R&D: interactive globalisation, separated globalisation and a possible combination. The paper indicates that research and development might have to be treated separately with regard to their globalisation, and proposes industry and country characteristics as the key factors for globalisation approach selection, and site capability and strategic decision as the impacting factors for globalisation evolution. Originality/value – This paper emphasises the dispersion of R&D activities, which is seldom addressed by existing internationalisation theories. Its investigation provides a foundation for the further extension of current internationalisation theories to consider global R&D. Moreover, the theoretical gap in the existing literature between global R&D and production is noted. This paper bridges this gap by clarifying the interaction between R&D and production in their globalisation, conceptualising three globalisation approaches, and proposing tentative factors that have impacts on approach selection and management.