R&D, offshoring and task allocation along a global supply chain

Larry D. QIU*, Mohan ZHOU

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)

Abstract

This paper analyzes the decision of a multinational firm from a developed country to slice a production chain and to allocate different tasks in the production chain globally. The process involves a wide range of tasks that varies from very routine jobs to research and development (R&D) intensive work. We find that under certain conditions, a drop in offshoring costs (1) leads to more slicing (an increase in the length of production chain) and more offshoring, (2) stimulates R&D, and (3) raises employment in the developed country.
Original languageEnglish
Pages (from-to)18-34
Number of pages17
JournalAsia-Pacific Journal of Accounting and Economics
Volume21
Issue number1
Early online date3 Dec 2013
DOIs
Publication statusPublished - 2014
Externally publishedYes

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Keywords

  • R&D
  • offshoring
  • production chain
  • slicing
  • innovation
  • task

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