The case describes and discusses the organizational and strategic challenges of outsourcing research and development (R & D) of Denmark to China. Nokia Denmark was founded in 1996 as a subsidiary of Nokia Corporation and contained the largest R & D unit of Nokia, focusing on the development of mobile phones, outside Finland. In 2007, Nokia Denmark received instructions from headquarters, a drastic increase in the number of mobile phones developed. Motivated by the n … Read more »

The case describes and discusses the organizational and strategic challenges of outsourcing research and development (R & D) of Denmark to China. Nokia Denmark was founded in 1996 as a subsidiary of Nokia Corporation and contained the largest R & D unit of Nokia, focusing on the development of mobile phones, outside Finland. In 2007, Nokia Denmark received instructions from headquarters, a drastic increase in the number of mobile phones developed. Motivated by the need to release the pressure on its in-house capabilities, Nokia Denmark chose certain development projects on the Taiwanese company Foxconn, in a joint R & D (JRD) outsource setup. Foxconn, one of the world’s largest electronic component manufacturers, which was also developing products for many of Nokia’s competitors, was responsible for the development and testing of selected standardized and less complex given mobile phones, while more complex and challenging technology projects in their own house were kept. But by 2010, Foxconn was a central figure in Denmark’s Nokia product development process with responsibility for increasingly complex projects. Given the increasing importance of Foxconn for Nokia Denmark, the increasing pressure from corporate headquarters and the competitive market environment for products and costs, Nokia Demark confronted with a central question of how to proceed with the JRD. Three alternatives have been outlined for the future of Nokia Denmark JRD with Foxconn management could be on the increase, leakage, or the continuation of the status quo decide
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from
Torben Pedersen,
Marcus Moller Larsen
Source: Ivey Publishing
15 pages.
Release Date: 20, December 2011. Prod #: W11594-PDF-ENG
From in-house to joint R & D: The Way Forward for Nokia Denmark HBR case solution