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Creating value through offshore outsourcing: An integrative framework

Author

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  • Mukherjee, Debmalya
  • Gaur, Ajai S.
  • Datta, Avimanyu

Abstract

This article proposes an analytical framework to explain value creation through offshore outsourcing by addressing a key question: How do firms create value by outsourcing their business functions to foreign external providers? The growing prevalence of offshore outsourcing as a dominant business practice in global business makes this question worthy of further research attention. Situated within the organizational design literature, our proposed value creation framework also draws from strategic resource management, disintegration, location-specific resourcing, and externalization (D–L–E) and contingency perspectives. Our analysis shows that firms embarking on offshore outsourcing create value by effectively managing their internal and external resources in accordance with a changing global environment. The framework has significant implications for theory and practice and suggests avenues for further research.

Suggested Citation

  • Mukherjee, Debmalya & Gaur, Ajai S. & Datta, Avimanyu, 2013. "Creating value through offshore outsourcing: An integrative framework," Journal of International Management, Elsevier, vol. 19(4), pages 377-389.
  • Handle: RePEc:eee:intman:v:19:y:2013:i:4:p:377-389
    DOI: 10.1016/j.intman.2013.03.015
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jensen, Peter D. Ørberg & Larsen, Marcus M. & Pedersen, Torben, 2013. "The organizational design of offshoring: Taking stock and moving forward," Journal of International Management, Elsevier, vol. 19(4), pages 315-323.
    2. Niccolò Pisani & Joan Enric Ricart, 2016. "Offshoring of Services: A Review of the Literature and Organizing Framework," Management International Review, Springer, vol. 56(3), pages 385-424, June.
    3. repec:eee:jbrese:v:82:y:2018:i:c:p:220-229 is not listed on IDEAS
    4. Zimmermann, Angelika & Ravishankar, M.N., 2016. "A systems perspective on offshoring strategy and motivational drivers amongst onshore and offshore employees," Journal of World Business, Elsevier, vol. 51(4), pages 548-567.
    5. Yi-Ju Lo & Tung Hung, 2015. "Structure offshoring and returns on offshoring," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 443-479, June.
    6. repec:spr:manint:v:55:y:2015:i:1:d:10.1007_s11575-014-0224-5 is not listed on IDEAS
    7. repec:pal:jintbs:v:49:y:2018:i:3:d:10.1057_s41267-017-0136-2 is not listed on IDEAS
    8. repec:spr:manint:v:57:y:2017:i:4:d:10.1007_s11575-017-0315-1 is not listed on IDEAS
    9. Valle, Sandra & García, Francisco & Avella, Lucía, 2015. "Offshoring Intermediate Manufacturing: Boost or Hindrance to Firm Innovation?," Journal of International Management, Elsevier, vol. 21(2), pages 117-134.

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