However, depending on captive product
structure, the process of forming a captive can be complex, time-consuming and require significant expertise.
The positive relationship between local outsourcing and captive offshoring of product development is stronger (weaker) when the captive product development unit has an absolute low-cost (high-cost) position compared to other MNC units located abroad.
The trade-off relationship between local cooperation and captive offshoring may also be affected by the captive product development unit's cost position within the corporate network.
Hypothesis 3b: The focal captive product development unit's absolute cost position negatively moderates the relationship between local cooperation with clients and captive offshore orders.
Or will many choose to spec what's still being offered outside the captive product
? Complicating matters somewhat is how they feel about the new emissions technology coming on-stream in 2010, selective catalytic reduction (SCR) or whether they'd prefer to stick with what they've known since 2007, which is exhaust gas recirculation (EGR)?
Intuitive Captive Solutions (ICS), a Denver, Colo.-based company that developed the "CapPlus" captive product
in 2006, helped Francis create CQG's private insurance company.
The operations are perfect for our captive product
mix, but also open the door for outside jobs."
But now it also thermoforms extremely large parts, both for captive products
and to support other thermoformers who need big-part capabilities.