The effect of inter- and intra-organizational distances on success of offshored outsourced innovation: A configurational approach

This study investigates the role of different dimensions of distance (interorganizational versus intraorganizational, physical versus psychic) on the success of offshore outsourcing of innovation projects. Using fuzzy set qualitative comparative analysis, we identify organizational configurations of spatial, temporal, cultural and linguistic distances that are more likely to lead to successful collaborative outcomes from offshore outsourcing of innovation projects. The findings show that co-location by itself is insufficient to achieve successful offshore outsourcing of innovation but requires, in addition, the presence of high inter-organizational physical distance combined with low intra-organizational psychic distance. Our study highlights the need to jointly consider intra- and inter-organizational distances and both physical and psychic dimensions of distance in offshore outsourcing of innovation.