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Role of Corporate-Wide Offshoring Strategy on Offshoring Drivers, Risks and Performance

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Author Info

  • Silvia Massini
  • Nidthida Perm-Ajchariyawong
  • Arie Lewin

Abstract

In this study we investigate the role of corporate offshoring strategy on offshoring decisions and performance. Based on 876 offshoring projects from 226 companies obtained by means of surveys conducted in the USA and Europe, we examine the effect of offshoring strategy on factors influencing firms' views of offshoring, and the effect of offshoring strategy on offshoring performance. Separate analyses were conducted for US and European companies in order to explore any regional heterogeneity in offshoring. A comparative analysis between companies with and without an offshoring strategy reveals that when making offshoring decisions, the former consider a broader range of factors (drivers, risks and locations) as important compared to companies without an offshoring strategy, suggesting association between offshoring strategy and managerial attention. The results also indicate that the adoption of a corporate offshoring strategy has a significant positive effect on cost savings achieved from offshore implementations, and that innovation activities have a significant negative impact on cost savings, but only for European companies.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/13662716.2010.496242
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Industry and Innovation.

Volume (Year): 17 (2010)
Issue (Month): 4 ()
Pages: 337-371

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Handle: RePEc:taf:indinn:v:17:y:2010:i:4:p:337-371

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Related research

Keywords: Offshoring; offshoring of business services; offshoring strategy; offshoring performance; attention-based view;

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Cited by:
  1. Karpaty, Patrik & Gustavsson Tingvall, Patrik, 2011. "Offshoring of Services and Corruption: Do Firms Escape Corrupt Countries?," Working Papers, Örebro University, School of Business 2011:2, Örebro University, School of Business, revised 28 May 2012.
  2. Heyman, Fredrik & Gustavsson Tingvall, Patrik, 2012. "The Dynamics of Offshoring and Institutions," Ratio Working Papers, The Ratio Institute 190, The Ratio Institute.
  3. Bengt Söderlund & Patrik Tingvall, 2014. "Dynamic effects of institutions on firm-level exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 150(2), pages 277-308, May.
  4. Lewin, Arie Y. & Volberda, Henk W., 2011. "Co-evolution of global sourcing: The need to understand the underlying mechanisms of firm-decisions to offshore," International Business Review, Elsevier, vol. 20(3), pages 241-251, June.

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