Offshoring and Improvisational Learning: Empirical Insights into Developing Global R&D Capabilities

This study examines how global research and development (R&D) capabilities develop through improvisational learning. Using empirical insights from two large Swedish multinational companies and their early learning from establishing a captive R&D offshore unit in Bangalore, India, we use multicase inductive analysis to identify how companies cope with challenge related to coordinating R&D across geographically dispersed units through improvisational learning. Using a cooperative stage model analysis, we explain how improvisational learning occurs during the setup, start-up and ongoing stages of establishing captive R&D offshoring operations. We find that improvisational actions lead to developing routines as a response to solving unexpected coordination challenges and help explain how global R&D capabilities develop.