Strategies in Outsourcing R&D Processes to Maintain Market Competitiveness

Strategies in Outsourcing R&D Processes to Maintain Market Competitiveness by Berina Yerkic-Husejnovic MBA, Averett University, 2006 BS, Virginia Commonwealth University, 2003 BA, Virginia Commonwealth University, 2003 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University June 2017 Abstract In the 21st century, managing outsourced research and development (R&D) processes is critical to an organization’s success. Guided by the logistic outsourcing theory developed by de Boer, Gaytan, and Arroyo, the purpose of this single case study was to explore strategies and processes organizational leaders used to manage outsourced R&D to maintain market competitiveness. Semistructured interviews were conducted with 5 purposefully selected business leaders who were responsible for outsourcing R&D in a single Fortune 500 corporation in the Mid-Atlantic region of the United States. Company records were also gathered as data. Yin’s 5-step process for a case study and key words in context analysis were used to analyze the data. Findings included 3 main themes: (a) the outsourcing decision-making process with internal and external constraints, (b) the effectiveness of managing outsourcing services and processes, and (c) the influence of outsourcing on business effectiveness and new products. Findings also indicated no practical system to measure effectiveness of outsourced R&D services on market competitiveness. The lack of measurement effectiveness was due to a lack of processes in place to measure R&D performance and no practical approach to measure impact of R&D on market competitiveness. Findings offered insight into strategies used by business leaders to manage outsourced R&D processes. Findings may also have implications for positive social change such as impacting communities through employment, generating government revenues through taxes, and creating a positive impact on job creation in the industries that promote R&D outsourcing.In the 21st century, managing outsourced research and development (R&D) processes is critical to an organization’s success. Guided by the logistic outsourcing theory developed by de Boer, Gaytan, and Arroyo, the purpose of this single case study was to explore strategies and processes organizational leaders used to manage outsourced R&D to maintain market competitiveness. Semistructured interviews were conducted with 5 purposefully selected business leaders who were responsible for outsourcing R&D in a single Fortune 500 corporation in the Mid-Atlantic region of the United States. Company records were also gathered as data. Yin’s 5-step process for a case study and key words in context analysis were used to analyze the data. Findings included 3 main themes: (a) the outsourcing decision-making process with internal and external constraints, (b) the effectiveness of managing outsourcing services and processes, and (c) the influence of outsourcing on business effectiveness and new products. Findings also indicated no practical system to measure effectiveness of outsourced R&D services on market competitiveness. The lack of measurement effectiveness was due to a lack of processes in place to measure R&D performance and no practical approach to measure impact of R&D on market competitiveness. Findings offered insight into strategies used by business leaders to manage outsourced R&D processes. Findings may also have implications for positive social change such as impacting communities through employment, generating government revenues through taxes, and creating a positive impact on job creation in the industries that promote R&D outsourcing. Strategies in Outsourcing R&D Processes to Maintain Market Competitiveness by Berina Yerkic-Husejnovic MBA, Averett University, 2006 BS, Virginia Commonwealth University, 2003 BA, Virginia Commonwealth University, 2003 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University June 2017 Dedication I dedicate this doctoral study to my daughters, Ayla and Hana; my wonderful husband, Dragan; my parents, Mirsad and Dr. Sedika; my brother Ismar; and my grandparents, Hajrudin and Hadji Senija. I would like to thank my wonderful husband, Dragan Yerkic, for your love, patience, encouragement, and support. I am proud to be your wife and the most proud being called mama by our two wonderful daughters, Ayla Yerkic and Hana Yerkic. As intellectually draining as this journey has been, it would not have been possible without the wonderful smiles and laughter of my dear daughters. Dragane, Ayla, and Hana you mean the world to me. I love you. I would also like to thank my wonderful parents, my mother Dr. Sedika Husejnovic and my father Mirsad Husejnovic, for being my first teachers and providing support, wisdom, guidance, advice, and love. I am proud to call you my parents. Without you I would not have been able to accomplish this intellectually challenging voyage. You placed your life on hold for me to get educated. I am forever grateful for having such great parents and being your daughter. I love you. Lastly, I would like to thank my late grandmother, Hadji Senija Handzic, and my late grandfather, Hajrudin Handzic, for instilling integrity, accountability, ethics, faith, hope, and hard work. I am forever thankful for having had the privilege knowing you and enjoying the short time with you while you were alive. I miss you and will forever cherish the memories and be thankful for our short time together. Thank you sincerely. I love you. Acknowledgments I would like to take this opportunity to acknowledge and thank my chair, Dr. Matthew Knight (Dr. Matt), for his support, patience, and continued guidance while I developed my study. I would like to also thank Dr. Jorge Gaytan, Dr. Lionel de Souza, and Dr. Richard Snyder for their thoughtful and valued feedback and reviews of my doctoral study.