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The Strategic Nexus of Offshoring and Outsourcing Decisions

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  • Ram Mudambi
  • Markus Venzin

Abstract

One important effect of the increasing integration of the world economy is the rising importance of possibilities to offshore and outsource value-creating activities. In many industries, firms are able to disaggregate their value chains into smaller parts. This process allows for a less path-dependent approach to the firm's ideal location profile (through offshoring and relocation) and control strategies (through outsourcing). This article argues that optimal decisions regarding individual processes recognize the linkages of these processes with the firm's entire value chain. The article explores the magnitude, sequence, and dynamics of interdependent decisions regarding the location and control of various parts of the value chain. By using case illustrations from the mobile handset and financial services industries, this article provides a novel perspective on the disintegration, mobility, and reintegration of value chain activities in a global context. Copyright (c) 2010 The Authors. Journal of Management Studies (c) 2010 Blackwell Publishing Ltd and Society for the Advancement of Management Studies.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Management Studies.

Volume (Year): 47 (2010)
Issue (Month): s2 (December)
Pages: 1510-1533

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Handle: RePEc:bla:jomstd:v:47:y:2010:i:s2:p:1510-1533

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380

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Cited by:
  1. Julien Gooris & Carine Peeters, 2012. "Home-Host Country Distance and Governance Choices in Service Offshoring," Working Papers ECARES ECARES 2012-007, ULB -- Universite Libre de Bruxelles.
  2. Davide Castellani & Fabio Pieri, 2012. "R&D Offshoring and the Productivity Growth of European Regions," Development Working Papers 345, Centro Studi Luca d\'Agliano, University of Milano, revised 13 Nov 2012.
  3. Pierre Mathieu & Dominique Geoffroy-Terryn, 2012. "L'Expertise Du Gestionnaire Des Ressources Humaines A L'Interface De Multiples Influences," Post-Print halshs-00769067, HAL.

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