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The use of expatriates in the offshoring of services - Framework and research propositions

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Author Info

  • Florence Duvivier
  • Carine Peeters

Abstract

This paper studies the propensity of using expatriates as one type of international transfer assignees in the context of service offshoring operations. It proposes a theoretical framework that explains the choice of using expatriates as a function of the five main characteristics of offshoring projects: the objectives pursued with offshoring - cost savings, service and process improvement, or innovation and learning -, the type of task offshored - more or less advanced -, the host country risks – the inter-firm relationship or the environmental uncertainty to the offshoring firm -, the offshore governance mode - captive or outsourcing -, and the size of the project. The framework also incorporates firm level moderating factors that are experience (with offshoring and with expatriations) and size. Research propositions provide a framework for companies and researchers to approach international transfer assignment decisions for service offshoring activities in a more systematic way.

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Bibliographic Info

Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 11-059.

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Length: 24 p.
Date of creation: Dec 2011
Date of revision:
Publication status: Published by:
Handle: RePEc:sol:wpaper:2013/105661

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Keywords: offshoring; services; expatriates; international assignment;

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References

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  1. Harzing, Anne-Wil, 2001. "Of bears, bumble-bees, and spiders: the role of expatriates in controlling foreign subsidiaries," Journal of World Business, Elsevier, vol. 36(4), pages 366-379, January.
  2. Gooris, Julien & Peeters, Carine, 2014. "Home–Host Country Distance in Offshore Governance Choices," Journal of International Management, Elsevier, vol. 20(1), pages 73-86.
  3. Arie Lewin & Carine Peeters, 2006. "Offshoring administrative and technical work: business hype or the onset of fundamental strategic and organizational transformation ?," ULB Institutional Repository 2013/9039, ULB -- Universite Libre de Bruxelles.
  4. Caligiuri, Paula M. & Cascio, Wayne F., 1998. "Can we send her there? Maximizing the success of western women on global assignments," Journal of World Business, Elsevier, vol. 33(4), pages 394-416, January.
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  6. Robert E. Lipsey, 2006. "Measuring International Trade in Services," NBER Working Papers 12271, National Bureau of Economic Research, Inc.
  7. 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.
  8. J Stewart Black, 1988. "Work Role Transitions: A Study of American Expatriate Managers in Japan," Journal of International Business Studies, Palgrave Macmillan, vol. 19(2), pages 277-294, June.
  9. 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.
  10. 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.
  11. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 411-432, September.
  12. Hutzschenreuter, Thomas & Lewin, Arie Y. & Dresel, Stephan, 2011. "Governance modes for offshoring activities: A comparison of US and German firms," International Business Review, Elsevier, vol. 20(3), pages 291-313, June.
  13. Earl Naumann, 1992. "A Conceptual Model of Expatriate Turnover," Journal of International Business Studies, Palgrave Macmillan, vol. 23(3), pages 499-531, September.
  14. Arie Y Lewin & Silvia Massini & Carine Peeters, 2009. "Why are companies offshoring innovation? The emerging global race for talent," Journal of International Business Studies, Palgrave Macmillan, vol. 40(6), pages 901-925, August.
  15. Daniel C Feldman & David C Thomas, 1992. "Career Management Issues Facing Expatriates," Journal of International Business Studies, Palgrave Macmillan, vol. 23(2), pages 271-293, June.
  16. Scullion, Hugh & Brewster, Chris, 2001. "The management of expatriates: messages from Europe?," Journal of World Business, Elsevier, vol. 36(4), pages 346-365, January.
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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. Gooris, Julien & Peeters, Carine, 2014. "Home–Host Country Distance in Offshore Governance Choices," Journal of International Management, Elsevier, vol. 20(1), pages 73-86.

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