IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v39y2008i8p1261-1277.html
   My bibliography  Save this article

Offshoring as a survival strategy: evidence from manufacturing firms in Belgium

Author

Listed:
  • Kristien Coucke

    (HUB Brussels, and Catholic University of Leuven)

  • Leo Sleuwaegen

    (Vlerick Leuven Gent Management School, Erasmus University Rotterdam, and Catholic University of Leuven)

Abstract

This paper analyzes the impact of globalization on the exit behavior of manufacturing firms in Belgium. Imports from low-wage countries are found to exert a strong competitive effect, which raises the likelihood of exit of firms in industries where intra-industry trade is relatively low. Similar to import competition, growing penetration by multinational firms in the industry has an equally strong competitive impact on the likelihood of exit of domestic firms. However, Belgian firms that offshore activities to non-European Union countries are able to substantially improve their chances of survival. This also holds for subsidiaries of multinational enterprises operating in Belgium. Unlike domestic firms, the likelihood of exit of subsidiaries of multinational enterprises is found to be less sensitive to domestic market conditions in the host country. Journal of International Business Studies (2008) 39, 1261–1277. doi:10.1057/palgrave.jibs.8400403

Suggested Citation

  • Kristien Coucke & Leo Sleuwaegen, 2008. "Offshoring as a survival strategy: evidence from manufacturing firms in Belgium," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(8), pages 1261-1277, December.
    • Handle: RePEc:pal:jintbs:v:39:y:2008:i:8:p:1261-1277
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/jibs/journal/v39/n8/pdf/8400403a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/jibs/journal/v39/n8/full/8400403a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:pal:jintbs:v:39:y:2008:i:8:p:1261-1277. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    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.