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Understanding offshoring: A research framework based on disintegration, location and externalization advantages

  • Kedia, Ben L.
  • Mukherjee, Debmalya
Registered author(s):

    We present an analytical framework explaining offshoring in this paper. We address the question: why do firms offshore their business functions? Given the growing prevalence of offshoring as a dominant business practice in the world of global business, this question merits further research attention. We propose that firms embark on offshoring when they perceive three sets of interrelated advantages: disintegration advantages (D), location-specific resourcing advantages (L) and externalization advantages (E). Theories from multiple disciplines form the foundation of Disintegration-Location-Externalization (DLE) framework. Implications for managers, government policy makers and recommendations for future research are explored.

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    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 44 (2009)
    Issue (Month): 3 (July)
    Pages: 250-261

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    Handle: RePEc:eee:worbus:v:44:y:2009:i:3:p:250-261
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