Internal vs. external R&D teams: Evidences from the Italian wine industry

Research output: Contribution to journalArticle

Authors

  • Marcella Giacomarra
  • S. M. Riad Shams
  • Maria Crescimanno
  • Georgia Sakka
  • Gian Luca Gregori
  • Antonino Galati

External departments

  • University of Palermo
  • University of Nicosia
  • Marche Polytechnic University

Details

Original languageEnglish
Number of pages10
JournalJournal of Business Research
Early online date4 Jun 2019
DOIs
Publication statusE-pub ahead of print - 4 Jun 2019
Publication type

Research output: Contribution to journalArticle

Abstract

R&D teams' internationalization attracts interests from different research-streams. However, the decision on what type of R&D structure is more convenient to invest in may differ, based on several factors, such as risk-taking propensity and internal resource availability. With an aim to enrich the extant literature and to provide practical insights for managers working in the wine industry, this case study explores the determinants of an Italian family-owned winery that attempts to keep a balance between its internal and external R&D teams' decision, using an integrated theoretical framework based on the transaction costs and the resource-based view theory. The optimal R&D solution based on an accurate costs vs benefits analysis leads the firm to hire highly qualified staff to manage its internal R&D unit, as well as to complement the unit with complementary resource that can be accessed through external R&D knowledge sources.