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Institutional factors affecting offshore business process and information technology outsourcing

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  • Kshetri, Nir

Abstract

Micro and macro level impacts of offshore outsourcing are far from clear. Thus there are some well-founded rationales for and against offshore outsourcing as well as a number of misinformed and ill guided viewpoints. Using institutional theory as a lens, this paper analyzes the drivers of offshore business process and information technology outsourcing. We examine the mechanisms by which regulative rules, social rules, culturally supported habits and subconsciously accepted rules and customs influence assessment, selection as well as continuation of outsourcing projects. Managerial and policy implications are discussed and directions for future research have been suggested.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Management.

Volume (Year): 13 (2007)
Issue (Month): 1 (March)
Pages: 38-56

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Handle: RePEc:eee:intman:v:13:y:2007:i:1:p:38-56

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Keywords: Offshore outsourcing Institutions Privacy laws Rule of law Codes of conduct;

References

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  1. anonymous, 2005. "Focus on Authors," Marketing Science, INFORMS, vol. 24(3), pages 518-522.
  2. anonymous, 2005. "Focus on Authors," Marketing Science, INFORMS, vol. 24(2), pages 302-304.
  3. Grossman, Gene & Helpman, Elhanan, 2002. "Outsourcing in a Global Economy," CEPR Discussion Papers 3165, C.E.P.R. Discussion Papers.
  4. Gene M. Grossman & Elhanan Helpman, 2002. "Integration Versus Outsourcing In Industry Equilibrium," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 85-120, February.
  5. Paul Welfens, 1999. "Overcoming the Russian transformation crisis," Intereconomics: Review of European Economic Policy, Springer, vol. 34(3), pages 144-151, May.
  6. Kathleen M. Eisenhardt, 1985. "Control: Organizational and Economic Approaches," Management Science, INFORMS, vol. 31(2), pages 134-149, February.
  7. anonymous, 2005. "Focus on Authors," Marketing Science, INFORMS, vol. 24(4), pages 646-648.
  8. anonymous, 2005. "Focus on Authors," Marketing Science, INFORMS, vol. 24(1), pages 175-178.
  9. Geoffrey M. Hodgson, 2003. "The hidden persuaders: institutions and individuals in economic theory," Cambridge Journal of Economics, Oxford University Press, vol. 27(2), pages 159-175, March.
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Citations

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Cited by:
  1. Gooris, Julien & Peeters, Carine, 2014. "Home–Host Country Distance in Offshore Governance Choices," Journal of International Management, Elsevier, vol. 20(1), pages 73-86.
  2. Florence Duvivier & Carine Peeters, 2011. "The use of expatriates in the offshoring of services - Framework and research propositions," Working Papers CEB 11-059, ULB -- Universite Libre de Bruxelles.
  3. Kothari, Tanvi & Lahiri, Somnath, 2012. "Yesterday, today and tomorrow: An overview of research publications in the Journal of International Management," Journal of International Management, Elsevier, vol. 18(1), pages 102-110.
  4. 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.
  5. Tate, Wendy L. & Ellram, Lisa M. & Bals, Lydia & Hartmann, Evi, 2009. "Offshore outsourcing of services: An evolutionary perspective," International Journal of Production Economics, Elsevier, vol. 120(2), pages 512-524, August.
  6. Lahiri, Somnath & Kedia, Ben L., 2011. "Co-evolution of institutional and organizational factors in explaining offshore outsourcing," International Business Review, Elsevier, vol. 20(3), pages 252-263, June.
  7. Luo, Yadong & Wang, Stephanie Lu & Jayaraman, Vaidyanathan & Zheng, Qinqin, 2013. "Governing business process offshoring: Properties, processes, and preferred modes," Journal of World Business, Elsevier, vol. 48(3), pages 407-419.
  8. Marie CORIS (GREThA), 2008. "The coordination issues of relocations: How proximity still matters in location of software development activities\r\n," Cahiers du GREThA 2008-03, Groupe de Recherche en Economie Théorique et Appliquée.
  9. Chen, Jihong & McQueen, Robert J. & Sun, Peter Y.T., 2013. "Knowledge Transfer and Knowledge Building at Offshored Technical Support Centers," Journal of International Management, Elsevier, vol. 19(4), pages 362-376.
  10. Schmeisser, Bjoern, 2013. "A Systematic Review of Literature on Offshoring of Value Chain Activities," Journal of International Management, Elsevier, vol. 19(4), pages 390-406.
  11. Carine Peeters & Patricia Garcia-Prieto Sol & Sébastien Point, 2009. "Building the business case for diversity in offshoring," Working Papers CEB 09-007.RS, ULB -- Universite Libre de Bruxelles.
  12. Hätönen, Jussi, 2009. "Making the locational choice: A case approach to the development of a theory of offshore outsourcing and internationalization," Journal of International Management, Elsevier, vol. 15(1), pages 61-76, March.

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