Offshore outsourcing of services: An evolutionary perspective
AbstractOffshore outsourcing is gaining increasing importance and attention in both theory and practice. The purpose of this research is to use nine in-depth case studies to analyze the evolution of offshore services outsourcing with regard to how expectations and governance structures change over time. Five testable propositions are presented, building on institutional theory, transaction cost, and resource-based perspectives. The cases demonstrate that offshore outsourcing is initiated because of increasing internal and external pressure to conform and reduce costs. Moreover, companies "chase" efficiency improvements in other geographic locations. But after reducing costs, companies discover more strategic benefits such as the potential to increase quality and market share. Importantly, as buyer-supplier relationships move from tactical to more strategic, expectations and governance structures change.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Production Economics.
Volume (Year): 120 (2009)
Issue (Month): 2 (August)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ijpe
Offshoring Offshore outsourcing Institutional theory Resource-based view Transaction cost economics;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gregory Mankiw, N. & Swagel, Phillip, 2006.
"The politics and economics of offshore outsourcing,"
Journal of Monetary Economics,
Elsevier, vol. 53(5), pages 1027-1056, July.
- N. Gregory Mankiw & Phillip Swagel, 2006. "The Politics and Economics of Offshore Outsourcing," NBER Working Papers 12398, National Bureau of Economic Research, Inc.
- N. Gregory Mankiw & Phillip Swagel, 2009. "The Politics and Economics of Offshore Outsourcing," Working Papers 25726, American Enterprise Institute.
- N. Gregory Mankiw & Phillip Swagel, 2006. "The Politics and Economics of Offshore Outsourcing," Harvard Institute of Economic Research Working Papers 2120, Harvard - Institute of Economic Research.
- Bunyaratavej, Kraiwinee & Hahn, Eugene D. & Doh, Jonathan P., 2007. "International offshoring of services: A parity study," Journal of International Management, Elsevier, vol. 13(1), pages 7-21, March.
- Susan Christopherson, 2007. "Barriers to 'US style' lean retailing: the case of Wal-Mart's failure in Germany," Journal of Economic Geography, Oxford University Press, vol. 7(4), pages 451-469, July.
- Lyons, Bruce R., 1995. "Specific investment, economies of scale, and the make-or-buy decision: A test of transaction cost theory," Journal of Economic Behavior & Organization, Elsevier, vol. 26(3), pages 431-443, May.
- Janet Y Murray & Masaaki Kotabe & Albert R Wildt, 1995. "Strategic and Financial Performance Implications of Global Sourcing Strategy: A Contingency Analysis," Journal of International Business Studies, Palgrave Macmillan, vol. 26(1), pages 181-202, March.
- Jonathan P. Doh, 2005. "Offshore Outsourcing: Implications for International Business and Strategic Management Theory and Practice," Journal of Management Studies, Wiley Blackwell, vol. 42(3), pages 695-704, 05.
- Keith D. Brouthers & Lance Eliot Brouthers, 2003. "Why Service and Manufacturing Entry Mode Choices Differ: The Influence of Transaction Cost Factors, Risk and Trust," Journal of Management Studies, Wiley Blackwell, vol. 40(5), pages 1179-1204, 07.
- Masaaki Kotabe & Janet Y Murray, 1990. "Linking Product and Process Innovations and Modes of International Sourcing in Global Competition: A Case of Foreign Multinational Firms," Journal of International Business Studies, Palgrave Macmillan, vol. 21(3), pages 383-408, September.
- Dossani, Rafiq & Kenney, Martin, 2007. "The Next Wave of Globalization: Relocating Service Provision to India," World Development, Elsevier, vol. 35(5), pages 772-791, May.
- Kshetri, Nir, 2007. "Institutional factors affecting offshore business process and information technology outsourcing," Journal of International Management, Elsevier, vol. 13(1), pages 38-56, March.
- Klassen, Robert D. & Vereecke, Ann, 2012. "Social issues in supply chains: Capabilities link responsibility, risk (opportunity), and performance," International Journal of Production Economics, Elsevier, vol. 140(1), pages 103-115.
- Lo, Chris K.Y. & Yeung, Andy C.L. & Edwin Cheng, T.C., 2011. "Meta-standards, financial performance and senior executive compensation in China: An institutional perspective," International Journal of Production Economics, Elsevier, vol. 129(1), pages 119-126, January.
- Bustinza, O.F. & Arias-Aranda, D. & Gutierrez-Gutierrez, L., 2010. "Outsourcing, competitive capabilities and performance: an empirical study in service firms," International Journal of Production Economics, Elsevier, vol. 126(2), pages 276-288, August.
- Wagner, Stephan M. & Sutter, Reto, 2012. "A qualitative investigation of innovation between third-‐party logistics providers and customers," International Journal of Production Economics, Elsevier, vol. 140(2), pages 944-958.
- Schoenherr, Tobias, 2012. "The role of environmental management in sustainable business development: A multi-country investigation," International Journal of Production Economics, Elsevier, vol. 140(1), pages 116-128.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If references are entirely missing, you can add them using this form.