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Leveraging Offshoring: The Identification of New Business Opportunities in International Settings

Author

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  • Federica Angeli
  • Rosa Grimaldi

Abstract

This work aims to shed light on the process through which small and medium-sized enterprises (SMEs) identify new business opportunities within their ongoing offshoring activities. Empirical evidence is drawn on the case of think3, an Italian medium-sized software company that has been offshoring its R&D activities to Bangalore, India, since the year 2000. In 2004, the company started a brand new “global” business: from selling software solutions for computer-aided design, it began selling the engineering capabilities to use its solutions, leveraging highly qualified Indian mechanical engineers. Our analysis underlines three elements underpinning think3's ability in envisaging a new profitable business opportunity. These are its experiential knowledge of: (a) the markets, clients and competitors, (b) the offshore context, and (c) the internationalization process as a software house, embodied in the ability to promote offshore cultural integration and to align home and offshore operations. This study enables a better understanding of the factors triggering the recognition of new business opportunities by SMEs, at the international level.

Suggested Citation

  • Federica Angeli & Rosa Grimaldi, 2010. "Leveraging Offshoring: The Identification of New Business Opportunities in International Settings," Industry and Innovation, Taylor & Francis Journals, vol. 17(4), pages 393-413.
  • Handle: RePEc:taf:indinn:v:17:y:2010:i:4:p:393-413
    DOI: 10.1080/13662716.2010.496245
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    Citations

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    Cited by:

    1. Alicia Rodríguez & María Jesús Nieto, 2016. "Does R&D offshoring lead to SME growth? Different governance modes and the mediating role of innovation," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1734-1753, August.
    2. Ceci, Federica & Prencipe, Andrea, 2013. "Does Distance Hinder Coordination? Identifying and Bridging Boundaries of Offshored Work," Journal of International Management, Elsevier, vol. 19(4), pages 324-332.

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