IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v13y2007i1p38-56.html

Institutional factors affecting offshore business process and information technology outsourcing

Author

Listed:
  • 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.

Suggested Citation

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

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425306001232
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Geoffrey M. Hodgson, 2003. "The hidden persuaders: institutions and individuals in economic theory," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(2), pages 159-175, March.
    2. Gene M. Grossman & Elhanan Helpman, 2005. "Outsourcing in a Global Economy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 135-159.
    3. anonymous, 2005. "Focus on Authors," Marketing Science, INFORMS, vol. 24(3), pages 518-522.
    4. Saeed Parto, 2005. "Economic Activity and Institutions: Taking Stock," Journal of Economic Issues, Taylor & Francis Journals, vol. 39(1), pages 21-52, March.
    5. anonymous, 2005. "Focus on Authors," Marketing Science, INFORMS, vol. 24(4), pages 646-648.
    6. Qing Hu & Carol Saunders & Mary Gebelt, 1997. "Research Report: Diffusion of Information Systems Outsourcing: A Reevaluation of Influence Sources," Information Systems Research, INFORMS, vol. 8(3), pages 288-301, September.
    7. anonymous, 2005. "Focus on Authors," Marketing Science, INFORMS, vol. 24(1), pages 175-178.
    8. Soon Ang & Larry L. Cummings, 1997. "Strategic Response to Institutional Influences on Information Systems Outsourcing," Organization Science, INFORMS, vol. 8(3), pages 235-256, June.
    9. Geoffrey M. Hodgson & Warren J. Samuels & Marc R. Tool (ed.), 1994. "The Elgar Companion to Institutional and Evolutionary Economics," Books, Edward Elgar Publishing, volume 0, number 228.
    10. Kathleen M. Eisenhardt, 1985. "Control: Organizational and Economic Approaches," Management Science, INFORMS, vol. 31(2), pages 134-149, February.
    11. Paul Welfens, 1999. "Overcoming the Russian transformation crisis," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 34(3), pages 144-151, May.
    12. anonymous, 2005. "Focus on Authors," Marketing Science, INFORMS, vol. 24(2), pages 302-304.
    13. Lawrence Loh & N. Venkatraman, 1992. "Diffusion of Information Technology Outsourcing: Influence Sources and the Kodak Effect," Information Systems Research, INFORMS, vol. 3(4), pages 334-358, December.
    14. Bruno Dallago, 2002. "The Organizational Effect of the Economic System," Journal of Economic Issues, Taylor & Francis Journals, vol. 36(4), pages 953-979, December.
    15. Gene M. Grossman & Elhanan Helpman, 2002. "Integration versus Outsourcing in Industry Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 85-120.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baozhou Lu & Rudy Hirschheim & Andrew Schwarz, 2015. "Examining the antecedent factors of online microsourcing," Information Systems Frontiers, Springer, vol. 17(3), pages 601-617, June.
    2. Nir Kshetri & Ralf Bebenroth, 2012. "Japan's Orientation towards Foreign Investments: Inertia Effects and Driving Force of Institutional Changes," Discussion Paper Series DP2012-12, Research Institute for Economics & Business Administration, Kobe University.
    3. Nir KSHETRI & Lailani L. ALCANTARA & Yonghoon PARK, 2014. "Development of a Smart City and its Adoption and Acceptance: the Case of New Songdo," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(96), pages 113-128, 4th quart.
    4. Spiros Bougheas & Holger Görg, 2008. "Organizational Forms for Global Engagement of Firms," Discussion Papers 08/33, University of Nottingham, GEP.
    5. Gianmarco I.P. Ottaviano & Alessandro Turrini, 2002. "Distance and FDI when Contracts are Incomplete," Development Working Papers 165, Centro Studi Luca d'Agliano, University of Milano.
    6. Deborah Swenson, 2005. "Outsourcing Price Decisions: Evidence from U.S. 9802 Imports," NBER Working Papers 11184, National Bureau of Economic Research, Inc.
    7. Anuradha Roy & Ricardo Leiva, 2008. "Testing of a Structures Covariance Matrix for Three-Level Repeated Measures Data," Working Papers 0037, College of Business, University of Texas at San Antonio.
    8. Massa, Massimo & Schumacher, David, 2015. "Subcontracting in International Asset Management: New Evidence on Market Integration," CEPR Discussion Papers 10465, Centre for Economic Policy Research.
    9. Arribas, Iván & Pérez, Francisco & Tortosa-Ausina, Emili, 2006. "Measuring International Economic Integration: Theory and Evidence of Globalization," MPRA Paper 16010, University Library of Munich, Germany, revised 2006.
    10. Bauer, Christian J. & Langenmayr, Dominika, 2013. "Sorting into outsourcing: Are profits taxed at a gorilla's arm's length?," Journal of International Economics, Elsevier, vol. 90(2), pages 326-336.
    11. Joseph Pelzman, 2013. "“Womb for Rent”: International Service Trade Employing Assisted Reproduction Technologies (ARTs)," Review of International Economics, Wiley Blackwell, vol. 21(3), pages 387-400, August.
    12. Arti Grover, 2005. "Outsourcing Versus Foreign Direct Investment--A Welfare Analysis," Working papers 140, Centre for Development Economics, Delhi School of Economics.
    13. Eduardo Fernández-Huerga & Ana Pardo & Ana Salvador, 2023. "Compatibility and complementarity between institutional and post-Keynesian economics: a literature review with a particular focus on methodology," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(2), pages 413-443, July.
    14. Breunig, Christoph & Kummer, Michael & Ohnemus, Jörg & Viete, Steffen, 2016. "IT outsourcing and firm productivity: Eliminating bias from selective missingness in the dependent variable," ZEW Discussion Papers 16-092, ZEW - Leibniz Centre for European Economic Research.
    15. Puga, Diego & Trefler, Daniel, 2010. "Wake up and smell the ginseng: International trade and the rise of incremental innovation in low-wage countries," Journal of Development Economics, Elsevier, vol. 91(1), pages 64-76, January.
    16. Dermot Leahy & Catia Montagna, 2008. "Outsourcing Versus Fdi In Oligopoly Equilibrium," Dundee Discussion Papers in Economics 215, Economic Studies, University of Dundee.
    17. Gene M. Grossman & Elhanan Helpman, 2003. "Outsourcing Versus FDI in Industry Equilibrium," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 317-327, 04/05.
    18. Wilhelm Kohler, 2002. "The Distributional Effects of International Fragmentation," Economics working papers 2002_01, Department of Economics, Johannes Kepler University Linz, Austria.
    19. Ulrich Doraszelski & Jordi Jaumandreu, 2018. "Measuring the Bias of Technological Change," Journal of Political Economy, University of Chicago Press, vol. 126(3), pages 1027-1084.
    20. Altomonte, Carlo & Rungi, Armando, 2013. "Business Groups as Hierarchies of Firms: Determinants of Vertical Integration and Performance," Economy and Society 148920, Fondazione Eni Enrico Mattei (FEEM).

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:13:y:2007:i:1:p:38-56. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.